Trump Plans to Impose 25% Tariffs on Mexico, Canada by Feb. 1

(Bloomberg) —

President Donald Trump signaled plans to impose previously threatened tariffs of as much as 25% on Mexico and Canada by Feb. 1, reiterating his contention that America’s closest neighbors and largest trading partners are letting undocumented migrants and drugs flood into the US.

“We’re thinking in terms of 25% on Mexico and Canada, because they’re allowing vast numbers of people” across the border, Trump said in response to questions from reporters in the Oval Office on Monday night. “I think we’ll do it Feb. 1.”

Earlier in the day, Trump said in his inaugural address that “instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens.” He stopped short of mentioning specific countries as tariff targets.

His off-the-cuff comments, though, were aimed at two allies vital for US energy imports and auto supply chains. Any volley of new border taxes threatens to set off a trade war among the signatories of the US-Mexico-Canada Agreement, the successor to Nafta negotiated at Trump’s insistence during his first term. The pact governed the flow of $1.8 trillion in goods and services trade, based on 2022 data.

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Both Canada and Mexico have said they’d retaliate against American goods if Trump slaps tariffs on them. The USMCA is up for review in 2026.

“Canada’s a very bad abuser,” Trump said, complaining about the current of fentanyl and migrants across the northern US border.

The Canadian dollar and Mexi…