Newly inaugurated U.S. President Donald Trump stopped short of implementing 25 per cent tariffs against all Canadian imports on day one but hinted the measure might be just around the corner during his inaugural address on Monday (Jan. 20).

Speaking at an indoor ceremony at the Capitol Rotunda in Washington D.C., Trump didn’t address Canada by name, but focused on the southern border with Mexico, taking aim at perceived threats surrounding illegal immigration and crime.

Addressing a slew of executive orders, Trump confirmed his plans to establish the “External Revenue Service” he said will collect tariffs, duties and revenues from foreign sources.

“Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens,” Trump announced.

Make other nations pay?

Trump doubled down on his claims that he will make foreign nations pay heavy tariffs, despite warnings from economists that tariffs will lead to higher prices for Americans.

According to Export Development Canada, buyers are usually responsible for paying tariffs and many importers pass these costs down to consumers by charging higher prices.

The Wall Street Journal reported earlier on Monday that Trump planned to issue a broad memorandum to direct federal agencies to study trade policies and evaluate the U.S. trade relationships with China, Mexico and Canada. But the directive stopped short of imposing new tariffs on Trump’s first day in office.

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