“… meaning the lumber”
President Trump on Thursday reiterated that tariffs are coming against Canada and Mexico on Saturday, though he said the scope of those levies is still up in the air.
Why it matters: Canada and Mexico are the top U.S. trading partners, and his ongoing tariff threats have sparked fears of an economically damaging trade war.
In a question-and-answer session with reporters in the Oval Office, Trump confirmed his previously stated plan to impose tariffs on Feb. 1.
- “Mexico and Canada have never been good to us on trade. They’ve treated us very unfairly on trade,” Trump said, adding: “We don’t need what they have.”
- The U.S., Mexico and Canada have been joint parties to free trade agreements for decades, first NAFTA and then the USMCA.
Bloomberg is reporting that he’s going with the 25% tariffs. I haven’t seen that confirmed anywhere else. But it’s certainly causing trouble already:
Trump’s 25% Tariff Vows Send Canada, Mexico FX Tumbling
President Donald Trump’s renewed pledges to slap 25% tariffs on imports from Canada and Mexico on Feb. 1 jolted foreign exchange markets late in the New York trading session, sending currencies from both countries plunging against the US dollar.
The Mexican peso slid 1.1% and Canada’s dollar fell as much as 1.2% after Trump told reporters at the White House he would follow through on trade restrictions, which he’d vowed during his inauguration, on Saturday. The Bloomberg Dollar Spot Index erased an early loss to gain as much as 0.2%.
All because he’s mad that they haven’t properly licked his boots.
Enjoy your guacamole today because it’s going to be unaffordable before long.