Trump Finally Floats Specifics About Tariffs on Mexico and Canada, Markets React

President Donald Trump wasted no time signaling his trade ambitions on Monday but waited until later in the day to get specific. After a morning focused on broader inaugural announcements, Trump told reporters that 25% tariffs on Mexico and Canada could come as early as February 1, framing the move as a response to border issues. “We’re thinking in terms of 25%,” he said, calling Canada “a very bad abuser.”

The comments were part of a packed day of executive orders targeting regulations, immigration, and trade, leaving analysts scrambling to parse Trump’s sweeping agenda. His tariff threats were anticipated, but the proposed scale and speed of action surprised many. Earlier speculation had suggested targeted duties on select goods rather than broad-based levies.

A 25% tariff on Canadian goods could disrupt trade between the two nations, which exceeds $500 billion annually. Meanwhile, Mexico faces another potential escalation in Trump’s combative border policy.

Markets didn’t love the news. Stock futures surrendered early gains as Trump discussed the tariffs, though indices rebounded by Tuesday’s open. Treasury yields dipped, reflecting a familiar sense of investor wariness over Trump’s unpredictable trade strategies.

Trump’s trade rhetoric included hints of a broader plan: a potential 10% tariff on all trading partners, escalating over time. However, details remain sparse, and analysts are cautious about what comes next.