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Nov 26, 2024 6:43 PM - Connect Newsroom

Trump Announces Tariffs on Canada and Mexico, Raising Economic Concerns

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The impact can be gauged by the fact that in 2023, Canada's exports to the United States totaled $593 billion, which accounted for more than 77 percent of Canada's total exports.

In a significant blow to Canada, Donald Trump has announced that he will impose 25 percent tariffs on all imports from Canada and Mexico as soon as he takes office as President of the United States in the new year. This move is expected to cause major damage to Canadian businesses, jobs, and the economy, as the United States is Canada's largest trading partner.

The impact can be gauged by the fact that in 2023, Canada's exports to the United States totaled $593 billion, which accounted for more than 77 percent of Canada's total exports. Trump has warned that the tariffs will remain in place until Canada and Mexico take action to curb illegal immigration and drug trafficking into the United States.

Following Trump's tariff threat, the Canadian dollar recorded its biggest decline in 4 and a half years, although it later recovered. China's currency also weakened after Trump announced a 35 percent tariff on goods imported from China.

It is worth noting that Canada is the largest supplier of crude oil to the U.S., and the tariffs could further complicate this crucial sector.

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