Trump says Canada, Mexico, and China cannot delay February 1 tariffs.
Trump announces 25% tariffs on goods from Mexico and Canada, and 10% on goods from China.
Trump Announces New Tariffs on Mexico, Canada, and China
U.S. President Donald Trump announced on Friday that he will impose new tariffs of 25% on goods from Mexico and Canada and 10% on imports from China, stating that nothing could be done by the three countries to delay them.
Trump did, however, suggest a possible exemption for Canadian oil, setting its tariff at 10% instead of the 25% applied to other Canadian goods. He also signaled broader tariffs on oil and natural gas would be introduced in mid-February, causing oil prices to rise.
The president has been warning about these tariffs for weeks, insisting they will take effect on February 1 and remain in place until Mexico, Canada, and China take stronger actions to curb illegal immigration and fentanyl trafficking into the U.S. While signing executive orders in the Oval Office, Trump acknowledged that the tariffs could lead to higher consumer costs and short-term economic disruptions. Economists widely predict these sweeping tariffs, along with likely retaliatory measures, will impact global economic activity.
When asked if the affected countries could still negotiate a delay, Trump dismissed the possibility. "No, no. Not right now, no," he stated. He also rejected the idea that the tariffs were a negotiation tactic, adding, "No, it's not ... we have big [trade] deficits with all three of them."
Trump further hinted at additional tariffs, saying import duties were being considered for European goods, as well as for steel, aluminum, copper, pharmaceuticals, and semiconductors. "We're going to be putting tariffs on steel and aluminum, and ultimately copper. Copper will take a little longer," he said.
Financial markets reacted to the announcement with volatility. The Canadian dollar and Mexican peso weakened, U.S. Treasury bond yields rose, and stock markets closed lower. Despite market turbulence, Trump expressed little concern about the financial impact of his tariff policies.
White House spokesperson Karoline Leavitt reinforced the administration’s stance, stating, "The President will be implementing tomorrow 25% tariffs on Mexico, 25% tariffs on Canada, and a 10% tariff on China for the illegal fentanyl that they have sourced and allowed to distribute into our country, which has killed tens of millions of Americans." She added that further details of the tariffs would be released on Saturday.
Historically, past tariff implementations under Trump's administration have required a brief delay of two to three weeks to allow for customs system updates and importer notifications.
On Friday evening, Trump departed for his Mar-a-Lago estate in Florida, where he said he would be working through the weekend. He was accompanied by his commerce secretary nominee, Howard Lutnick, whom Trump has tapped as his lead trade policy advisor.
SIGNIFICANT DISRUTION
Economists and business leaders have cautioned that the tariffs will drive up prices on imports, including aluminum and lumber from Canada, as well as fruits, vegetables, beer, and electronics from Mexico, along with motor vehicles from both nations.
Trump reiterated claims that the tariffs would generate hundreds of billions of dollars in revenue from other countries. However, economists widely agree that tariffs are ultimately paid by importing businesses, which either pass the costs on to consumers or absorb them through lower profits.
"President Trump's tariffs will tax America first," said Matthew Holmes, head of public policy at the Canadian Chamber of Commerce. "From higher prices at gas stations and grocery stores to increased costs for online shopping, tariffs ripple through the economy, harming consumers and businesses on both sides of the border."
The move is expected to trigger retaliatory tariffs, potentially disrupting over $2.1 trillion in annual trade between the U.S. and its three key trading partners.
Canadian Prime Minister Justin Trudeau vowed an immediate and forceful response, warning that Canadians could face "difficult times in the coming days and weeks."
Canada has already identified specific targets for immediate retaliation, including tariffs on Florida orange juice, according to a source familiar with the plan. While a broader list covering up to C$150 billion ($105 billion) in U.S. imports has been prepared, Canada plans to hold public consultations before implementing further measures.
Mexican President Claudia Sheinbaum said she would approach Trump's tariff decision with caution but remained open to continued dialogue on border issues. She previously warned that Mexico would retaliate, arguing the tariffs could eliminate 400,000 U.S. jobs and drive up consumer prices in the U.S.
China has been more reserved in outlining its response but has pledged to retaliate.
Beijing "firmly opposes" the new tariffs, a spokesperson for its embassy in Washington stated, adding, "There is no winner in a trade war or tariff war—it benefits neither side nor the world."
