Donald Trump president-elect, “I’ll impose 25% tariffs on all items from Canada and Mexico”, “Canada and Mexico must fix illegal immigration, drug enforcement”

In the last few days, Canada has been in the news for President-elect Donald Trump’s 25% tariffs on Canada and Mexico.

President-elect Donald Trump has stated that one of the first executive orders he will sign upon taking office will be an increase in tariffs on Canada, Mexico, and China. While the tariffs on China were expected, the tariffs on the U.S. neighbors Canada and Mexico are an unusual reaction.

The reasoning is that the governments of Canada and Mexico are not doing enough to stop illegal immigrants, drugs (especially fentanyl), etc. from crossing their borders.

Tariffs with a ‘clue’

How Trump works?

Beyond the fact that he’s going to impose 25% tariffs on Canada and Mexico, it’s worth noting why he’s doing it.

“Canada and Mexico need to crack down on illegal immigrants and drugs.”

President-elect Trump claims that illegal immigrants and illegal drugs are coming from Canada and Mexico, and that Canadian and Mexican authorities are not doing enough to stop them.

This is how Trump the ‘Tariff Man’ works, “Using tariffs as leverage”

If there is a characteristic, it is that he considers the possibility of using tariffs as leverage in all policy directions, not just those related to trade.

THOTH Newsroom is the brand name of THOTH Investment’s English-language blog.

THOTH Investment is an economic and financial research company based in South Korea(Seoul) and Canada(Vancouver).