US President Donald Trump announced plans to impose 25% duties on imports from Mexico and Canada from 1 February, citing concerns over immigration and the flow of fentanyl into the US.
Speaking from the Oval Office during an executive order signing on 20 January, Trump called Canada “a bad abuser” and signed an executive order to rename the Gulf of Mexico as the Gulf of America. He stated that the body of water “has long been an integral asset to our once burgeoning nation and has remained an indelible part of America.”
In response, Mexican President Claudia Sheinbaum said that her country “does not have to bow its head” to the United States.
We are a great country, a cultural power, and Mexicans are a hard-working, honest people. (…) Obviously the Gulf of Mexico is recognised by the United Nations… but why don’t we call this ‘Mexican America’?
The tariff announcement triggered an immediate market reaction, with the Mexican peso falling more than 1% against the dollar by Tuesday morning. The Canadian dollar also weakened, losing just under 1%.
The memorandum also signals plans for a possible renegotiation of the United States-Mexico-Canada Agreement (USMCA) in 2026. The document instructs agencies to ensure that trade agreements “put American workers, farmers, and businesses first.”
Meanwhile, market analysts expressed surprise at the US targeting Mexico and Canada as a first step. However, before taking office, Trump warned that along with 25% tariffs on Mexican and Canadian imports, he might impose 10% duties on global imports and 60% duties on Chinese goods.
