What shift in market dynamics can you expect with Donald Trump’s latest tariffs on Canada, Mexico and China?

Donald Trump proposed 25 per cent tariffs on Canada and Mexico and 10 per cent tariffs on China are set to take effect on Tuesday, February 4, following his executive orders on February 1 directing the administration to impose duties on these three trade partners. As per the report, an additional 25 per cent tariff will be applicable to all imports from Canada and Mexico, except energy resources, which will face a 10 per cent duty instead.

Image source: Britannica

The President's order specifies the tariffs will apply to those products entering the US for consumption or withdrawn from warehouses for consumption on or after 12:01 a.m. Eastern Standard Time on February 4, 2025. Goods already in transit to the United States with scheduled arrival at 12:01 a.m. on February 1 are exempt from the tariffs.

Particularly, for Canada - the largest exporter to the United States - President Donald Trump has declared 25 per cent tariffs on all merchandise goods for consumption. Only energy and energy resources, including crude oil, natural gas, lease condensates, natural gas liquids, refined petroleum products, uranium, coal, biofuels, geothermal heat, the kinetic movement of flowing water, and critical minerals, will be subject to 10 per cent duties.

Soon after this news surfaced, the US aluminium industry urged the President to exempt Canadian imports of raw metal from his tariffs, in a bid to protect small and medium-sized domestic manufacturers that depend heavily on imported aluminium for construction, automotive components, and food packaging sectors.