Trump plans 25% tariff on imports from Canada and Mexico

Donald Trump announced plans to sign an executive order imposing a 25% tariff on all imports from Canada and Mexico. This marks a significant increase from his earlier proposal of a 10% tariff during his election campaign. The Canadian Chamber of Commerce estimates that a 25% tariff could reduce Canada's economy by about 2.6%, equating to a loss of $2,000 per person. Both Canada and Mexico are likely to retaliate against these tariffs. The proposed tariffs may violate the Canada-United States-Mexico Agreement (CUSMA), which allows most goods to move tariff-free. Experts suggest Trump may be using the threat of tariffs as leverage, and the final outcome remains uncertain.