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White House Says Trump Tariffs on Canada, Mexico and China Will Come Saturday
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By Associated Press
Published 2 weeks ago on
January 31, 2025

Trump's tariffs on Canada, Mexico, and China to take effect Saturday, sparking concerns of trade conflicts and price hikes. (AP/Evan Vucci)

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WASHINGTON — President Donald Trump will put in place 25% tariffs on imports from Canada and Mexico and 10% tariffs on goods from China effective on Saturday, the White House said, but it provided no word on whether there would be any exemptions to the measures that could result in swift price increases to U.S. consumers.

Trump had been threatening the tariffs to ensure greater cooperation from the countries on stopping illegal immigration and the smuggling of chemicals used for fentanyl, but he has also pledged to use tariffs to boost domestic manufacturing and raise revenues for the federal government.

“Starting tomorrow, those tariffs will be in place,” White House press secretary Karoline Leavitt told reporters. “These are promises made and promises kept by the president.”

Political and Economic Risks

The tariffs carry both political and economic risks for Trump, who is just two weeks into his second term. Many voters backed the Republican on the promise that he could tamp down inflation, but the possibility of tariffs could trigger higher prices and potentially disrupt the energy, auto, lumber and agricultural sectors.

Trump had said he was weighing issuing an exemption for Canadian and Mexican oil imports, but Leavitt said she had no information to share on the president’s decision on any potential carveouts.

The United States imported almost 4.6 million barrels of oil daily from Canada in October and 563,000 barrels from Mexico, according to the Energy Information Administration. U.S. daily production during that month averaged nearly 13.5 million barrels a day.

Trump has previously stated a 10% tariff on Chinese imports would be on top of other import taxes charged on products from the country.

Potential for Retaliation

Both Canada and Mexico have said they’ve prepared the option of retaliatory tariffs to be used if necessary, which in turn could trigger a wider trade conflict that economic analyses say could hurt growth and further accelerate inflation.

Canadian Prime Minister Justin Trudeau said Friday that Canada is ready is a respond if Trump goes ahead with the tariffs, but he did not give details.

“We’re ready with a response, a purposeful, forceful but reasonable, immediate response,” he said. “It’s not what we want, but if he moves forward, we will also act.”

Trudeau said tariffs would have “disastrous consequences” for the U.S, putting American jobs at risk and causing prices to rise. Trudeau reiterated that less than 1% of the fentanyl and illegal crossings into the U.S. come from Canada.

Mexico’s Response

Mexican President Claudia Sheinbaum said Friday that Mexico has maintained a dialogue with Trump’s team since before he returned to the White House, but she emphasized that Mexico has a “Plan A, Plan B, Plan C for what the United States government decides.”

“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.

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