Trump is moving forward with his plan to impose 25% tariffs on imports from Canada and Mexico and 10% tariffs on goods from China, effective Saturday, the White House announced. However, it remains unclear whether there will be any exemptions to soften the impact on U.S. consumers.
White House press secretary Karoline Leavitt confirmed the new measures, calling them a fulfillment of Trump’s campaign promises. “Starting tomorrow, those tariffs will be in place,” Leavitt told reporters. “These are promises made and promises kept by the president.” The tariffs come just two weeks into Trump’s second term and carry both political and economic risks. While Trump has pledged to use tariffs to curb illegal immigration, combat fentanyl smuggling, and boost domestic manufacturing, critics warn the move could drive up prices for American consumers and disrupt key industries, including energy, agriculture, and automotive manufacturing.
Trump had previously suggested that Canadian and Mexican oil imports might be exempted from the tariffs, but Leavitt did not provide an update on whether that exemption would be granted. The United States imports nearly 4.6 million barrels of oil daily from Canada and 563,000 barrels from Mexico, making them key energy suppliers. Shortly after the White House’s announcement, the S&P 500 stock index fell, wiping out earlier gains for the day.
Both Canada and Mexico have signaled they are prepared to retaliate if Trump moves forward with the tariffs, raising concerns about a wider trade war that could slow economic growth and further increase inflation. Canadian Prime Minister Justin Trudeau warned that the tariffs would have “disastrous consequences” for both countries, putting American jobs at risk and raising consumer prices. “We’re ready with a response, a purposeful, forceful but reasonable, immediate response,” Trudeau said, though he did not provide specific details. He also pushed back against Trump’s justification for the tariffs, noting that less than 1% of fentanyl and illegal border crossings into the U.S. originate from Canada.
Mexican President Claudia Sheinbaum also addressed the situation, saying Mexico has been in ongoing dialogue with Trump’s administration but is prepared for any outcome. “Now it is very important that the Mexican people know that we are always going to defend the dignity of our people, we are always going to defend the respect of our sovereignty and a dialogue between equals, as we have always said, without subordination,” Sheinbaum said. She added that Mexico has a “Plan A, Plan B, Plan C” depending on what actions the U.S. government takes.
Trump’s tariff strategy is expected to face pushback from U.S. businesses and consumers, especially those in industries reliant on foreign imports. Economists warn that higher prices on imported goods could contribute to inflation, a key issue that Trump promised to address during his re-election campaign.
