President Donald Trump announced plans to levy 25% tariffs on Mexico and Canada as early as February 1st, citing border concerns. Trump labeled Canada "a very bad abuser" and tied the proposed tariffs to fentanyl trafficking issues. The tariffs are part of broader efforts to reform U.S. trade policies, including a new External Revenue Service to collect duties. Trump also hinted at using tariffs as leverage in TikTok negotiations with China, contingent on finding a U.S. partner for the app. Stock market futures fell and the dollar weakened following the announcement, while Treasury yields declined.