“We’re thinking in terms of 25 percent on Mexico and Canada, because they’re allowing vast numbers of people — Canada’s a very bad abuser also — vast numbers of people to come in, and fentanyl to come in,” Trump said in the Oval Office.
During the election campaign, he also pledged tariffs of 10% on all imports into the US and said he would hit China with a 60% import tax.
Trump has said tariffs will make Americans richer, although critics say the costs are likely to be passed on to consumers.
The President has also said he would create an “External Revenue Service” to collect all tariffs, duties and revenues from foreign sources.
On Tuesday morning, Japan’s Nikkei 225 index was trading flat, South Korea’s Kospi was down about 0.2% and Australia’s ASX 200 rose by around 0.6%.
Meanwhile, the dollar regained some ground against some other major currencies, including the pound and the euro.
“Market sentiment was dented during the signing of executive orders by President Trump in the Oval Office,” said Tim Waterer, chief market analyst at financial services firm KCM Trade.
“Investors heard more explicit details regarding the Trump tariff agenda, which sullied the market mood somewhat.”
US markets were closed on Monday for the Martin Luther King Jr Day holiday.
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