The Blubber

Trump Slams Canadian Banking, Tariffs Mexico and China Over Fentanyl

WASHINGTON — President Donald Trump voiced frustration over Canadian banking policies and commented on Mexican cartel activity Tuesday morning—just hours after slapping 25% tariffs on America’s northern and southern neighbors.

The sweeping trade action, imposed in response to fentanyl imports that Trump says have led to one in every 1,000 American deaths over the past five years, also included a new 20% tariff on Chinese goods tied to the production of synthetic opioids.

Trump was expected to address the sanctions in his Tuesday evening speech to Congress.

Trump Rips Canada’s Banking System

Trump took to Truth Social to criticize Canada’s restrictive banking laws.

“Canada doesn’t allow American banks to do business in Canada, but their banks flood the American market. Oh, that seems fair to me, doesn’t it?” he wrote.

The Canadian Bankers Association previously noted that 16 U.S. banks, including Wells Fargo and Capital One, operate subsidiaries in Canada, though the country has strict regulations limiting foreign financial institutions.

Tariffs, Immigration, and Fentanyl

In another Truth Social post, Trump shared a screenshot of a New York Times article quoting a Mexican cartel leader who said he was “trying to figure out how to protect his family” in case the U.S. military strikes Mexico.

Trump followed up with a simple message:
“IF COMPANIES MOVE TO THE UNITED STATES, THERE ARE NO TARIFFS!!!”

Canada and Mexico Scramble to Respond

The 78-year-old president had initially threatened the steep tariffs after returning to the White House on January 20. He delayed their implementation in February after Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum sought to reduce illegal immigration and crack down on fentanyl smuggling.

That effort temporarily drove illegal border crossings to a 25-year low, but Trump proceeded with the tariffs, arguing they protect American companies and bring manufacturing jobs back to the U.S.

Market Chaos

China, Mexico, and Canada together account for nearly half of all U.S. imports. With inflation still high, Trump acknowledged that tariffs could push consumer prices higher but said the long-term benefits outweigh the short-term costs.

Global markets plunged in response:

• The Dow Jones Industrial Average, already down 650 points Monday, slid another 500+ points by Tuesday afternoon.
• Investors remain uncertain about how long the trade war will last and what its full economic impact will be.