The White House has announced that President Donald Trump will introduce new tariffs on Saturday, imposing a 25% duty on imports from Mexico and Canada, and a 10% tariff on goods from China.
According to White House Press Secretary Karoline Leavitt, the decision comes in response to “the illegal fentanyl that they have sourced and allowed to distribute into our country, which has killed 10s of millions of Americans.”
It remains uncertain whether certain goods, such as oil, will be exempt from the new import taxes.
Speaking on Thursday, Trump emphasized that these tariffs are also aimed at addressing trade imbalances with the U.S.’s neighbors and stemming the influx of undocumented migrants crossing U.S. borders.
Leavitt reiterated the administration’s stance during a press briefing on Friday, stating, “These are promises made and promises kept by the President.”
During his election campaign, Trump had proposed tariffs of up to 60% on Chinese goods but opted instead to direct his administration to conduct a study on the issue upon returning to the White House.
Since 2018, U.S. imports from China have stagnated, a shift attributed in part to the escalating tariffs imposed during Trump’s first term.
Earlier January,bChinese Vice Premier Ding Xuexiang, speaking at the World Economic Forum in Davos, Switzerland, cautioned against rising protectionism. Without directly naming the U.S., he expressed China’s commitment to a “win-win” approach in trade relations and its intent to increase imports.
China, Canada, and Mexico collectively account for 40% of U.S. imports, raising concerns that these new tariffs could trigger a significant trade conflict and drive up prices for American consumers.
Reacting to the announcement, Canadian Prime Minister Justin Trudeau stated on Friday, “It’s not what we want, but if he moves forward, we will also act.”
Both Canada and Mexico have indicated they will implement countermeasures in response to the tariffs while also reassuring the U.S. that they are working to address border-related issues.
If levies are imposed on U.S. oil imports from Canada and Mexico, it could contradict Trump’s pledge to lower the cost of living.
Given that around 40% of crude processed in U.S. refineries comes from imports—most of it from Canada—such tariffs could contribute to higher costs for businesses and consumers, potentially raising prices on essentials like gasoline and groceries.
Tariffs function as a tax on imported goods, making them more expensive and discouraging consumers from purchasing foreign products.
While this is intended to encourage buying domestically produced goods and stimulate the local economy, higher import costs on energy could have the unintended consequence of driving up overall expenses for Americans.
