President Donald Trump's threats to impose punishing tariffs on Canada and Mexico may be part of a strategy to gain leverage ahead of new negotiations on a regional trade agreement, experts said.

President Donald Trump said in an Oval Office signing ceremony Monday evening that his administration will impose 25% tariffs on Mexico and Canada on February 1, an extraordinary change in North American trade policy that could raise prices for American consumers.

At the World Economic Forum in Davos on Thursday, President Donald Trump boomed, “Canada has been very tough to deal with over the years. We don't need them to make our cars, and they make a lot of them.