Former US President Donald Trump is set to impose new tariffs, including 25% on imports from Mexico and Canada and 10% on China, starting Saturday, according to the White House.
However, Trump stated on Friday that Canadian oil would face a reduced tariff of 10%, which could take effect on February 18. He also signaled future tariffs on the European Union, citing unfair treatment of US trade interests.
White House press secretary Karoline Leavitt linked the tariffs on Canada and Mexico to their alleged role in the illegal fentanyl trade and rising undocumented migration. “These are promises made and promises kept by the President,” she said.
During his campaign, Trump threatened tariffs of up to 60% on Chinese goods but has opted for a more cautious approach, first ordering a review of trade policies. Chinese officials, meanwhile, have warned against escalating protectionism.
Canada, Mexico, and China—accounting for 40% of US imports—have warned of retaliatory measures, raising fears of a renewed trade war. Canadian Prime Minister Justin Trudeau responded, saying, “If he moves forward, we will also act.”
Economists warn the tariffs could drive up inflation by increasing costs on imported energy and goods. Former central banker Mark Carney cautioned that the measures would slow economic growth and harm the US’s global standing.
