The White House announced Friday that President Donald Trump will impose new tariffs on imports from Canada, Mexico, and China starting Saturday. The duties will include 25 percent tariffs on goods from Canada and Mexico and a 10 percent tariff on Chinese imports as part of a broader trade policy shift.
White House Press Secretary Karoline Leavitt said the tariffs are a response to illegal fentanyl trafficking, which she claimed has contributed to the deaths of tens of millions of Americans. She added that the administration is also targeting undocumented migration and trade deficits with U.S. neighbors.
“These are promises made and promises kept by the President,” Leavitt told reporters at a White House briefing.
Trump, who had previously threatened tariffs of up to 60 percent on Chinese goods during his election campaign, has so far opted for a more measured approach. Instead of immediate action upon returning to office, he initially ordered a review of trade policies before moving forward with these latest tariffs.
The move is expected to escalate trade tensions, particularly with Canada, Mexico, and China—America’s three largest trading partners, which collectively accounted for 40 percent of U.S. imports last year.
Canadian Prime Minister Justin Trudeau responded Friday, warning that Canada would retaliate:
“It’s not what we want, but if he moves forward, we will also act.”
Both Canada and Mexico have signaled they are considering countermeasures while also seeking to reassure Washington that they are addressing concerns about border security.
One key concern is whether U.S. oil imports from Canada and Mexico will be affected by the tariffs. If so, it could drive up energy costs, potentially undermining Trump’s pledge to reduce the cost of living.
About 40 percent of crude oil refined in the U.S. is imported, with Canada being the largest supplier. Tariffs on imported oil could raise gasoline and energy prices, which in turn could increase costs for businesses and consumers across sectors, including food and transportation.
China has yet to formally respond, but tensions between the world’s two largest economies are expected to rise. Earlier this month, Chinese Vice Premier Ding Xuexiang warned against protectionist policies while speaking at the World Economic Forum in Davos, Switzerland. He called for a win-win approach to trade relations but did not directly mention the U.S.
With global markets closely watching the fallout, the latest tariffs could trigger a new trade war and add pressure to inflation, affecting prices in the U.S. and beyond.
