Trump announced plans to impose a 25% tariff on goods from Mexico and Canada.

US President Donald Trump announced plans to impose a 25% tariff on imports from Mexico and Canada.

Bloomberg reports this news.

“We are considering a 25% tariff on Mexico and Canada as they allow a large number of people to enter the US,” Trump stated during his speech.

He added that these measures could take effect as early as February 1.

This decision may escalate economic relations between the countries involved in the United States-Mexico-Canada Agreement (USMCA), which regulates trade worth $1.8 trillion. Canada and Mexico have already announced that they will implement similar measures against American goods in response.

Trump accused Canada of “serious violations,” particularly regarding the influx of fentanyl and migrants crossing the northern border.

The economic impact of the announcement was immediate. The US dollar surged against major currencies, and the Bloomberg dollar index rose by 0.7% – the largest increase since December 18. In contrast, the Canadian dollar and Mexican peso each fell by 1.4%.

Meanwhile, Chinese markets experienced some relief as Trump refrained from immediately imposing tariffs on the PRC. The index of Chinese stocks in Hong Kong rose by 1%, although the offshore yuan lost some ground.

Economists warn that a potential trade war could seriously affect the markets and threaten the stability of the USMCA agreement, which is set for review in 2026.

Background. Previously, Trump signed an order, which postpones the ban on the popular app TikTok for 75 days, which was scheduled to be closed on January 19.