Trump threatens 25% tariffs on Mexico and Canada over border security issues

Former President Donald Trump has threatened to impose a 25% tariff on all products from Mexico and Canada, linking it to border security issues. This announcement caused fluctuations in currency markets, particularly affecting the Canadian dollar and the Mexican peso. Despite the strong language, analysts suggest the threat may not be serious. Canada does not face significant illegal immigration issues, and Mexico has had time to address concerns. Both countries could implement measures to avoid tariffs for the next four years. Market reactions indicate uncertainty. The USD/CAD exchange rate initially spiked but has since stabilized. Observers note that while Trump may continue to issue threats, the credibility of these tariffs appears diminished compared to past actions.