Universal tariffs promised by U.S. President Donald Trump during his presidential campaign are becoming a reality. On the 1st (local time), it was finally decided to impose a 25% universal tariff on Canada and Mexico, and an additional 10% tariff on China. This is the first time President Trump has decided to impose new tariffs since his re-election.
On the same day, President Trump posted on his social media (SNS) announcing that tariffs on Canada, Mexico, and China have been imposed under the International Emergency Economic Powers Act (IEEPA). Citing the influx of illegal immigrants and drugs into the U.S. as the reason for this measure, President Trump emphasized, "We must protect the American people, and ensuring everyone's safety is the president's duty."
According to the executive order signed by President Trump titled "Imposing Tariffs to Counter Illegal Drug Flow at the Northern Border," a 25% tariff will be imposed on all goods from Canada except energy products starting from the 4th (U.S. Eastern Time). Tariffs on Canadian energy products such as crude oil, which are linked to domestic oil price issues, will be 10%.
President Trump also decided not to apply the 'de minimis exemption' to Canada. Currently, goods imported by individuals valued under $800 are exempt from tariffs. The executive order includes a so-called 'retaliation clause' stating that "if Canada retaliates against the U.S. with tariffs or other measures, the tariff rate may be increased or the scope expanded."
For Mexico, a 25% universal tariff will be imposed on all products including energy products, and for China, a 10% universal tariff will be imposed starting from the 4th.
All tariffs are additional to existing tariffs, but in the case of Canada and Mexico, most products have not been subject to tariffs under the United States-Mexico-Canada Agreement (USMCA) until now.
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