- Trump signed an order to impose 25 percent tariffs on goods from Canada and Mexico, as well as a 10 percent levy on China on top of existing tariffs
President Donald Trump has signed orders to impose 25 percent tariffs on goods from Canada and Mexico and an additional 10 percent levy on goods from China.
Trump said the tariffs were imposed via the International Emergency Economic Powers Act “because of the major threat of illegal aliens and deadly drugs killing our citizens, including fentanyl.”
“We need to protect Americans, and it is my duty as President to ensure the safety of all. I made a promise on my Campaign to stop the flood of illegal aliens and drugs from pouring across our Borders, and Americans overwhelmingly voted in favor of it,” Trump posted on Truth Social after signing the orders Saturday evening.
The tariffs are to come into effect on Feb. 4.
The White House noted in a statement that “Fentanyl is the leading cause of death for Americans ages 18 to 45.”
“Today’s tariff announcement is necessary to hold China, Mexico, and Canada accountable for their promises to halt the flood of poisonous drugs into the United States,” the White House said on Saturday evening.
After weeks of speculating, the White House imposed the taxes in retaliation for “the illegal fentanyl that they have sourced and allowed to distribute into our country,” said Trump’s press secretary Karoline Leavitt.
“These are promises made and promises kept by the president,” Leavitt said at a Jan. 31 press conference.
Trump also said the levies were needed because of the sizable trade deficit between the United States and Canada. While the president estimated the gap to be $200 billion, recent U.S. Census Bureau data suggest the trade deficit with Canada was $55 billion in the first 11 months of 2024.
If they remain in place, the president’s tariffs will affect approximately $1.6 trillion in annual trade between the North American countries, including crude oil.
The United States imports about 4.5 million barrels of oil daily from Canada. President Trump told reporters that he will “probably” lower crude tariffs to 10 percent.
Sunderesh Heragu, a researcher and educator at Oklahoma State University, says gasoline prices could have the most notable impact, as the United States imports a lot of crude oil from its North American neighbors.
“Twenty percent of the oil from Canada gets processed by the U.S. refineries, so when that supply is cut, then you’re going to see at least 20 percent, maybe more, less gas at the pumps,” Heragu told The Epoch Times. “That’s going to impact the prices significantly.”
According to the American Automobile Association, the national average price for a gallon of gasoline is $3.11 on Jan. 31.
Meanwhile, Prime Minister Justin Trudeau said Canada will be imposing 25 percent tariffs on $155 billion worth of U.S. imports in response to President Donald Trump’s order to place 25 percent tariffs on Canadian goods.
“We will stand strong for Canada,” Trudeau said at a press conference on Feb. 1.
Trump signed an order on Feb. 1 to impose 25 percent tariffs on goods from Canada and Mexico, as well as a 10 percent levy on goods from China on top of the existing tariffs on that country.
Trudeau said the 25 percent retaliatory tariffs on $30 billion worth of U.S. imports will start on Feb. 4, the same day the American tariffs are set to begin. The tariffs on the other $125 billion worth of goods will come in 21 days, to allow impacted Canadian companies to adjust their supply chains.
American items that Canadians tariffs will be applied to include:
- Beer, wine, and bourbon
- Fruits and fruit juices including orange juice, as well as vegetables
- Perfume, clothing, and shoes
- Major consumer products such as household appliances and furniture
- Sports equipment
- Other materials such as lumber and plastics
The government of Canada says a more detailed list of impacted products will be released soon.
Trudeau said Canada is considering some non-tariff retaliatory responses as well, such as measures relating to “critical minerals and energy procurement” that the United States needs. When asked if Canada would be shutting off oil exports to the United States, Trudeau said he will be ensuring Canada’s response will be “equitable” and won’t be damaging to one part of the country more than the others.
And Mexican President Claudia Sheinbaum announced retaliatory tariffs against the United States Saturday night after President Donald Trump imposed 25 percent tariffs on Mexican imports into the United States earlier in the evening.
Sheinbaum said in a statement posted to social media platform X that she has directed her Secretary of Economy to implement “tariff and non-tariff measures in defense of Mexico’s interests.”
She called the White House’s accusations that her government was working in alliance with drug trafficking cartels “slander.”
She said the tariffs were her “Plan B,” and proposed to Trump to “establish a working group with our best public health and security teams.”
“Problems are not resolved by imposing tariffs, but by talking and dialoguing, as we did in recent weeks with your State Department to address the phenomenon of migration; in our case, with respect for human rights,” she said.
Written with agency reports
