U.S. President-elect Donald Trump has proposed a 25% tariff on all goods imported from Canada and Mexico.
This measure aims to pressure both nations to address issues related to drug trafficking and illegal immigration into the United States.
The proposed tariffs could have severe economic repercussions for Canada, which heavily relies on the U.S. – its largest trading partner.
“As everyone is aware, thousands of people are pouring through Mexico and Canada, bringing Crime and Drugs at levels never seen before,” said Trump in a statement posted to his social media company Truth Social.
“On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders. This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!”
Last year, Canada reported $439.6 billion in exports to the U.S., accounting for 76% of its total exports. The imposition of such a tariff could disrupt this critical trade relationship and impact the Canadian economy significantly.
Trump has justified the tariff by asserting that both Canada and Mexico possess the capability to halt the flow of drugs, such as fentanyl, and illegal immigrants into the U.S. However, he claims that both countries have failed to take adequate action to address these issues.
The U.S. border patrol encountered nearly 200,000 individuals at the Canadian border last year, marking a significant increase from previous years.
Despite this rise, the number of encounters remains far fewer than those at the Mexican border.
Some Republicans, including advisor Vivek Ramaswamy and Governor Chris Sununu, have advocated for stricter security measures at the northern border, such as building a wall and increasing patrols along Canada.
Tom Homan, Trump’s selected “border czar,” views the northern border as a significant security threat and plans to address it aggressively. Homan’s approach underscores the administration’s focus on tightening border security to prevent illegal activities.
Trump has also expressed his intention to negotiate the U.S.-Mexico-Canada Agreement in 2026. He has criticized the current deal for not sufficiently boosting U.S. auto manufacturing, indicating a desire for a more favourable agreement for American industries.
The political dynamics between the U.S. and Canada could also see shifts under Trump’s administration.
Trump’s national security advisor pick, Mike Waltz, has been critical of Canadian Prime Minister Justin Trudeau and has praised Conservative Leader Pierre Poilievre as a potential future leader who could reverse Trudeau’s policies.
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