Trump to impose tariffs on Canada, Mexico,China tomorrow

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The White House said Friday that President Donald Trump would impose a 25% tariff on goods coming to the U.S. from Canada and Mexico and a 10% tariff on those from China on Saturday, a move that could drive up prices for products coming into the U.S. from those countries.

Trump had said he would issue those tariffs on the first day of his presidency, then said on Inauguration Day that the tariffs would be put in place on Feb. 1. White House press secretary Karoline Leavitt told reporters on Friday that Trump would carry through on that Feb. 1 deadline.

Trump said Friday that there was nothing that the three countries could do to avoid the tariffs, which he said were in response to the import of fentanyl into the U.S. and because the U.S. has a trade deficit with the three countries. The U.S. is considered to have a trade deficit with those countries because it buys more goods and services from them than it sells to them.

The tariffs could increase how much U.S. consumers and businesses pay for goods coming from Canada, Mexico and China — including electronics, toys, shoes, fresh produce, lumber and cars. Tariffs are paid by companies importing goods into the U.S., similar to a tax.

While some businesses will look to source goods elsewhere, others with no alternatives will be forced to pay the fees. Companies will have to decide whether to pass these higher costs to consumers or absorb them, which would dent profits or require cuts to protect their margins. The implications could be wide-reaching across the U.S. economy, in part because American consumers and businesses imported more goods from Mexico than any other country.

Trump also said he would be putting tariffs on oil and gas imports in the next several weeks as well as on computer chips, steel and aluminum, but didn't provide any details. In addition, he said he would be putting a "tariff wall" around pharmaceuticals to bring the industry back to the U.S.

"It'll be a tremendous amount of money for our country, tremendous amount, these are big numbers," Trump told reporters Friday. "And in addition to that, and you see the power of the tariff, I mean, the tariff is good, and nobody can compete with us because we have by far the biggest piggy bank."

When asked about the impact tariffs will have on inflation, Leavitt cited relatively low inflation during Trump's first term when he placed tariffs on billions of Chinese goods.

"President Trump is going to do everything he possibly can to cut the inflation crisis that the previous administration imposed on the American people, and he will continue to effectively utilize tariffs," Leavitt said.

Tariffs during Trump's first term were more limited in scope than the current proposal and included a long list of exemptions and delays for certain products and industries. Economists have found those tariffs drove up prices for some imports, led to a net loss of manufacturing jobs and reduced corporate investments as a result of higher costs companies had to pay to import materials and parts.

Canadian Prime Minister Justin Trudeau said Friday that he was meeting with U.S. and Canadian officials to try to prevent the tariffs from being put in place, but that Canada was prepared to respond if tariffs were enacted.

“If the President does choose to implement any tariffs against Canada, we’re ready with a response. A purposeful, forceful, but reasonable immediate response,” Canadian Prime Minister Justin Trudeau said Friday. "We won’t relent until tariffs are removed and, of course, everything is on the table.”

During Trump's first term, China placed retaliatory tariffs on U.S. agriculture products, and nearly all the revenue collected by the U.S. from the tariffs on China went to payments to American farmers to offset their losses from those Chinese tariffs.

The U.S. auto industry is among the most vulnerable to the tariffs on Mexico and Canada. For decades, its supply chains have been heavily intertwined with America’s neighbors to the north and south. As vehicles and components cross borders multiple times during the production process, repeated 25% levies could quickly drive up vehicle costs.

The U.S. also depends on agricultural products from Mexico, one of the top suppliers of tomatoes, avocados, berries and peppers. Rising food prices have been a top concern for consumers and voters, with grocery costs up around 25% over the past four years — an issue Trump hammered on the campaign traiNBC News

"Made in USA" are weasel words that are used to trick Americans into thinking they're buying a high quality product with no slave labor involved. But "Made in USA" has no mention of those things and for they know, the products are being made in a remote place that is technically part of the US. So when I see "Made in USA" on the label, I'm like "No thanks".

This should ensure Poilievre's rise to the office of Prime Minister.

Canada's Prime Minister Justin Trudeau announced Saturday night that his country would respond to President Donald Trump's decision to enact a 25% tariff on Canadian exports to the U.S. by implementing a 25% tariff against $155 billion in U.S. goods.

Trudeau did not specify whether the $155 billion in American goods was the products' worth in Canadian or U.S. dollars. $155 billion in Canadian dollars would be about $106 billion in U.S. dollars.

Trudeau's comments came just hours after Trump signed an executive order implementing tariffs on goods from Canada, Mexico and China. Trump's order implemented a 25% tariff on imports from Mexico and Canada — excluding Canadian energy products, which would face a 10% tariff. He also implemented an additional 10% tariff on imports from China.

Trudeau said during the Saturday evening press conference that the tariffs on American goods include "immediate tariffs on $30 billion worth of goods as of Tuesday," the day the U.S. is set to begin collecting tariffs on Canadian goods. He said that the rest of the tariffs will come in about three weeks "to allow Canadian companies and supply chains to seek to find alternatives."

"Like the American tariffs, our response will also be far reaching and include everyday items such as American beer, wine and bourbon, fruits and fruit juices, including orange juice, along with vegetables, perfume, clothing and shoes," Trudeau said. "It'll include major consumer products like household appliances, furniture and sports equipment, and materials like lumber and plastics, along with much, much more."

Trudeau emphasized the long history of the U.S.-Canada alliance and argued that “if President Trump wants to usher in a new 'golden age' for the United States, the better path is to partner with Canada, not to punish us.”

The prime minister directly addressed Americans, saying that Trump’s move “will have real consequences for you, the American people.”

He also encouraged Canadians to think about ways to “do your part,” such as opting for Canadian-made products over American-made products at stores and changing summer vacation plans to stay in Canada.

Canada may not be alone in enacting reciprocal tariffs. Mexican President Claudia Sheinbaum said in Spanish in a post to X that she instructed her secretary of the economy "to implement the Plan B we have been working on, which includes tariff and non-tariff measures in defense of Mexico’s interests."

Sheinbaum also slammed the tariffs, saying in the post to X, “We categorically reject the White House’s slander of the Government of Mexico alleging alliances with criminal organizations, as well as any intention to interfere in our territory.”

"Mexico not only does not want fentanyl to reach the United States, it does not want it to reach anywhere," she added in Spanish.

"Therefore, if the United States wants to combat the criminal groups that traffic drugs and generate violence, we must work together in a comprehensive manner, but always under the principles of shared responsibility, mutual trust, collaboration and above all, respect for sovereignty, which is non-negotiable," she added. "Coordination, yes; subordination, no."

The Chinese Ministry of Commerce said in a statement that China would file a lawsuit with the World Trade Organization "and take necessary countermeasures to firmly safeguard its rights and interests."

China calls on the U.S. to correct its mistakes, work toward mutual understanding, engage in candid dialogue, strengthen cooperation, and manage differences on the basis of equality, mutual benefit, and mutual respect," the statement continued.

Neither the Chinese embassy in the U.S. nor China’s Ministry of Foreign Affairs immediately responded to requests for comment Saturday evening.

China’s Foreign Ministry spokesperson Mao Ning said during a press briefing earlier this week that “China has given support to the U.S.’s response to the fentanyl issue in the spirit of humanity and goodwill, and conducted counternarcotics cooperation with the U.S. side in a broad-based and in-depth way.”

“The achievements we have made are there for all to see,” Mao continued, according to the Chinese government transcript. “We hope the U.S. will work to continue the hard-won positive dynamics in the counternarcotics cooperation.”

China, Mexico and Canada are the top three suppliers of imports to the U.S., according to the Office of the U.S. Trade Representative. Mexico and Canada are U.S. allies and have long had steady economic relationships with the U.S.