Donald Trump may consider a 25% tariff on Canada, Mexico in February

"Tariffs are more effective as it keeps the Dollar stronger," he added.

Hours after his Inauguration, President Donald Trump announced that he is likely to consider a 25% on Canada and Mexico as early as February 1, in a move that could intensify trade tensions with neighbouring nations.

"We're thinking of tariffs of 25% on Mexico and Canada because they're allowing vast numbers of people to come in, and fentanyl to come in." said Trump, adding that Canada is a 'very bad abuser', as he voiced concerns over the illegal entry of fentanyl and migrants from the northern border of America.

The statement was made during a press briefing where the newly inaugurated president introduced a series of executive orders addressing topics such as regulations, free speech, and immigration.

The Mexican Peso and Canadian Dollar fell after the tariff-related comments by President Trump, while the dollar index nudged slightly higher.

"Tariffs are more effective as it keeps the Dollar stronger," he added.

Trump also spoke on the issue of potential tariff on China, and said may be, he would. "China charges us tariffs, we charge them very little, except for what I did. They took in hundreds of billions of dollars, but until I came along, China never paid 10 cents to this country. They ripped up off and they never paid money," said Trump.

However, Trump did not specify if and when he would impose additional tariffs on China, and said there will be 'meetings and calls' with Chinese President Xi Jinping on the issue. President Donald Trump also ordered to find out if Beijing complied with a deal signed during his first term, and did not unveil any China-specific tariffs on the first day of his Presidency.

Trump, however, did threaten that he may consider putting tariffs on China if it did not approve the proposed deal for TikTok which would give America control of 50% of the company.

During his previous term, Trump had imposed tariffs on Chinese imports, and started a trade war over allegations of intellectual property theft and currency manipulation. “Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens,” President Trump had said in his inauguration speech.

President Trump also mentioned that he will consider '100% tariff on BRICS nations' on the business they do with America, without elaborating further on the threat. Donald Trump has previously expressed strong views on trade policies of the BRICS group but has focused largely on China, due to the significant trade imbalance and allegations of unfair trade practices.

During his address, Trump said America will 'probably' stop buying oil from Venezuela, a country that also supplies crude oil to Indian state refiners. "We don’t have to buy their oil, we have plenty of oil," said Trump at the Oval Office.

President Trump added that he look to 'straighten' America's trade deficit with the European Union with tariffs, or by getting them to buy oil and gas from America.