President Donald Trump will proceed with a new round of tariffs on imports from Canada, Mexico, and China starting Saturday, the White House confirmed, reinforcing his administration's trade stance despite concerns over potential economic repercussions.
White House press secretary Karoline Leavitt told reporters Friday that the new tariffs would take effect as scheduled, following Trump's previous pledge to implement them by February 1. "I can confirm that, tomorrow, the February 1 deadline President Trump put into place with a statement several weeks ago continues," Leavitt said.
The tariffs will impose a 25% duty on goods from Canada and Mexico and a 10% levy on Chinese imports. The White House cited fentanyl trafficking as a key justification, accusing Mexico and China of enabling the flow of the synthetic opioid into the U.S. "These are promises made and promises kept by the president," Leavitt added.
While the administration remains steadfast in its approach, details on the implementation remain unclear. Leavitt declined to specify whether exemptions would be made, particularly for oil imports, a key concern for energy markets. Canada and Mexico are major suppliers of crude oil to the U.S., with Canada alone providing nearly 4.6 million barrels per day in October, according to the Energy Information Administration.
Trump has long used tariffs as a policy tool to pressure trading partners on a range of issues, from illegal immigration to domestic manufacturing. He has argued that tariffs will force countries to renegotiate trade deals in America's favor. "We don't need what they have," Trump said earlier this week, dismissing concerns about economic dependencies on North American trade partners.
The new tariffs have drawn cautious responses from Canada and Mexico. Mexican President Claudia Sheinbaum signaled her government was prepared for potential economic fallout. "We have a Plan A, Plan B and Plan C for whatever the U.S. government decides. It is very important for the people of Mexico to know that we will always defend our people's dignity, our sovereignty, and engage in dialogue as equals," she told reporters Friday.
Canadian Prime Minister Justin Trudeau has also indicated that his government will respond appropriately should the tariffs be enacted, though he did not outline specific measures.
While some economists argue that tariffs can be a useful bargaining tool, many warn of inflationary risks and economic inefficiencies. Unlike direct taxes on foreign governments, tariffs are paid by importers, who often pass costs onto consumers in the form of higher prices. The Peterson Institute for International Economics estimates that Trump's latest tariff measures could add $272 billion annually in tax burdens, costing the average U.S. household over $2,600 per year.
Despite concerns about inflation, some business leaders have defended the tariffs on strategic grounds. JPMorgan CEO Jamie Dimon told CNBC last week that if tariffs cause "a little inflation but address a national security issue, then people should get over it."
The tariffs could have far-reaching consequences for U.S. trade relations and the broader economy. While Trump's first-term tariffs had a limited effect on inflation, they were narrower in scope than the current measures, which target America's largest trading partners. Unlike previous rounds, these tariffs come at a time of heightened geopolitical tensions and economic uncertainty.
The full details of the tariff policy are expected to be released in the next 24 hours, according to the White House.