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President Donald Trump will enact tariffs on imports from Mexico, Canada and China starting Saturday– despite reports claiming the administration was looking for more targeted measures.
“The president will be implementing, tomorrow, a 25 percent tariffs on Mexico, 25 percent tariffs on Canada and a 10 percent tariff on China for the illegal fentanyl that they have sourced and allowed to distribute into our country which has killed tens of millions of Americans,” White House Press Secretary Karoline Leavitt said during her Friday briefing.
Leavitt made the claims after a Wall Street Journal report that stated members of the administration hoped to find more targeted measures rather than sweeping tariffs.
The White House as now denied those reports.
Staff were reportedly looking at measures that would use specific tariffs on steel and aluminum – similar to those Trump enacted during his first term – or exclude oil.
During his first administration, Trump got the U.S. into a trade war with China – something he hinted he could bring back while on the campaign trail. The president used tariffs as a political tool to punish those he believed treats the U.S. unfairly.
Though tariffs are designed to promote domestic production and purchasing by taxing imported goods, the increase in cost typically falls on consumers, not foreign governments. This is because retailers often sidestep the increased import costs by raising prices.
Numerous economic experts have warned that Trump’s tariffs on goods from those three countries could lead to price spikes and inflation – a concern shared by many voters who backed Trump.
On Thursday, Trump confirmed he was “in the process” of enacting tariffs on the United States’s neighbors to the north and south – which could have major impacts on the economies of the two nations.
“We’re going to make that determination probably tonight on oil. Because they send us oil, we’ll see – it depends on what their price is,” Trump said Thursday.
Trumps claims the tariffs are necessary to incentivize Canada and Mexico to enact stricter border policies to stop the flow of drugs, particularly fentanyl, into the U.S. The president has also said it would balance the trade partnership with both countries, which he believes disadvantages the U.S.
The U.S. imports a host of goods from the three nations that are set to face Saturday’s tariffs. The biggest imports from Canada into the U.S. are energy – with experts saying a 25 percent tariff will drive up oil costs and hurt consumers at the gas pump. In 2023, about 60 percent of crude oil imports came from Canada.
Canada is also a major importer of lumber, food and other goods.
The U.S. gets consumer electronics, cars and other products from Mexico. Approximately 2.6 million vehicles are imported from Mexico. The country to the south of the U.S. also provides 63 percent of vegetable imports. A 25 percent tariff could lead to higher prices at the grocery store for Americans.
China imports countless products, namely electronics, including nearly $45 billion worth of smartphones in 2023.
Canada and Mexico have said they would respond with their own measures
Mexico President Claudia Sheinbaum has remained cool-headed about the potential of tariffs.
“If there are U.S. tariffs, Mexico would also raise tariffs,” she said last week.
Meanwhile, the proponent of sweeping tariffs has caused political turmoil in Canada where economic concerns have created a cost of living crisis for millions.
