US President Donald Trump has been taking one rapid decision after another since coming to power. Now he has said that he can impose 25 percent tariffs on Canada and Mexico as early as February 1, while promising punitive measures on other countries as part of the new US trade policy.

Trump reiterated his threat against two of America's major trading partners just hours after being sworn in as president. He accused Canada and Mexico of failing to stop illegal immigration and drug smuggling into the United States.

‘Canada is abusing it’

In his statement as he signed several executive orders in the Oval Office, Trump said,

Changes in the US business system

Trump further said he was thinking of imposing tariffs on February 1. Earlier on Monday, Trump vowed to immediately begin changes to the US trade system to protect American workers and families.

Trump further said in his speech, 'Instead of taxing our citizens to enrich other countries, we will impose duties and taxes on foreign countries to enrich our citizens.'

Why is tariff imposed?

According to official trade data, Mexico, Canada and China are the major sources of goods imported by the United States. When asked about tariffs, Trump had earlier told reporters in the Oval Office that he could impose them, but added, "We're not ready for that yet."

Tariffs are paid to the government on purchases from abroad by U.S. importers, and the economic burden falls on the importers, foreign suppliers, or consumers.