Trump reiterates 25% tariff threat on Canada and Mexico from February 1

"We’ll be announcing the tariffs on Canada and Mexico for a number of reasons," Trump said while speaking to media on January 30 in the Oval Office.

US President Donald Trump reiterated his 25% tariff threat on Canada and Mexico, and said measures will be announced on February 1, owing to the illegal inflow of fentanyl and trade deficits with the two nations.

Gold prices surged to record high on safe haven demand after Trump's reaffirmation of the tariff threat. Both Mexican peso and Canadian dollar fell over 1% on anticipation of trade restrictions.

"We’ll be announcing the tariffs on Canada and Mexico for a number of reasons," Trump said while speaking to media on January 30 in the Oval Office.

"Number one is the people that have poured into our country so horribly and so much. Number two are the drugs, fentanyl and everything else that have come into the country. Number three are the massive subsidies that we’re giving to Canada and to Mexico in the form of deficits," he said.

"We don’t need the products that they have. We have all the oil that you need. We have all the trees you need," said Trump, referring to the large imports from Canada. WTI crude futures rose above $73 per barrel and the US dollar erased earlier losses after the comment.

Donald Trump left it open-ended if the 25% tariff on Mexico and Canada would be a floor, and said the levels 'may or may not rise with time'. Canada has said in the past that it will respond to any tariff measures.

Read More: Trump's tariffs on Canada, Mexico could open doors for India, shows MC analysis

On China, President Trump said he is considering levying tariffs. "With China, I’m also thinking about something because they’re sending fentanyl into our country, and because of that, they’re causing us hundreds of thousands of deaths."

"China is going to end up paying a tariff also for that, and we’re in the process of doing that," Trump added.

President Trump has hinted at tariffs on pharma, semiconductor chips, and metals after his inauguration.