- Trump did not impose new tariffs on his first day in office.
- He suggested that a 25% tariff on Mexico and Canada could come as soon as February 1.
- Trump also suggested that a universal tariff on imports from all foreign countries is not off the table.
President Donald Trump’s second term has officially begun and he has already signaled his plans to impose new tariffs.
While none of Trump’s first day of executive orders imposed tariffs, he told reporters in the Oval Office on Monday night that he was considering new import duties on Canada and Mexico in the coming days.
“We’re thinking in terms of 25% for Mexico and Canada because they’re allowing a large number of people to come in and fentanyl to come in,” Trump said. Asked when he plans to implement those tariffs, Trump replied: “I think February 1st.”
The tariffs are the president’s most immediate trade proposals, and echo his announcement in November, when he said he would impose a 25% tariff on Canada and Mexico if they failed to crack down on drug and border policies.
Trump also said Monday that a universal tariff on imports from all foreign countries is not off the table. “Maybe, but we’re not ready for that yet,” he said.
The details of exactly how Trump will impose tariffs — including the legal authority he will use — are unclear. Several trade policy experts previously told Business Insider that Trump’s tariff policies could raise prices for Americans on a range of goods affected by the targeted countries, including electronics and clothing.
From Mexico and Canada specifically, the US imports oil, auto parts, electronics, and medical products. Trump has denied that his trade plans will negatively affect consumers.
“Tariffs are going to make us rich as hell,” Trump said during a speech on Monday. “It will bring back our country’s businesses.”
Trump’s press team did not immediately respond to a request for comment from BI on details about the tariff plans.
What you need to know about Trump’s trade plans so far
Trump released a memo sent to a number of federal agencies on Monday asking each to review America’s trade policies and how they affect American businesses and workers. This includes directing the Commerce and Treasury Departments to review and identify any unfair trade practices and their national security implications.
The memorandum also called for the creation of a new Foreign Revenue Service. Trump first announced his intention to create the new agency on January 14, which he said at the time would collect fees and revenue from foreign countries. It is unclear how this differs from existing US Customs and Border Protection tariff collection programs, and the creation of a new agency requires approval by Congress.
On the campaign trail, Trump proposed a 60% tariff on China, along with a 100% tariff on the BRICS countries, unless they commit not to create a new currency that competes with the US dollar. Trump did not say Monday when or if those tariffs would come. However, Trump has suggested he may impose additional tariffs on China if the country refuses to allow TikTok’s owner to sell the app to a US company.
The timing and magnitude of the tariffs’ impact on prices will depend in part on the authority Trump uses to impose his trade plans, as several provisions within the law require different procedures the president would undergo to make trade policy changes.
Alan Wolff, a senior fellow at the Peterson Institute for International Economics and former deputy director-general of the World Trade Organization, told BI that with a Republican-controlled Congress, lawmakers are unlikely to challenge the authority Trump chooses to use. .
However, Wolff said he thinks Trump is unlikely to move forward with a universal tariff and will instead use it as leverage to achieve policy goals.
“I just don’t think he has the authority, under any statute that’s delegated authority to him, to impose a blanket fee, which was the original proposal,” Wolff said, adding that more targeted fees are possible. . “I don’t think charging everybody, every country, every product, is something he can do.”