Trump Announces New Tariffs on Imports from Canada, Mexico, and China Starting Saturday

The White House announced Friday that President Donald Trump will impose a 25% tariff on goods imported from Canada and Mexico and a 10% tariff on products from China, starting Saturday. This decision is expected to raise prices on a wide range of items entering the U.S. from these countries.

Trump had previously indicated plans to introduce these tariffs on his first day in office but later shifted the timeline to February 1. White House Press Secretary Karoline Leavitt confirmed Friday that Trump would meet this deadline.

Trump stated that the tariffs are a response to two key issues: the influx of fentanyl into the U.S. and the existing trade deficit with Canada, Mexico, and China. The U.S. runs a trade deficit with these nations because it imports more goods and services from them than it exports.

These tariffs are likely to affect the cost of numerous products for American consumers and businesses, including electronics, cars, toys, shoes, fresh produce, and lumber. Tariffs work like a tax on companies that bring goods into the country, often leading to higher prices.

Some companies may shift their supply chains to avoid these fees, but businesses without alternatives will either have to absorb the additional costs—hurting profits—or pass them on to consumers. The impact will be broad, especially given that Mexico is the U.S.’s top trading partner for imported goods.

Trump also announced plans to impose tariffs on imports of oil, gas, steel, aluminum, and computer chips in the coming weeks, though he provided no specific details. Additionally, he mentioned creating a “tariff wall” around pharmaceuticals to encourage domestic production.

“It’s going to bring in an incredible amount of money for the U.S.,” Trump told reporters Friday. “Tariffs are powerful, and nobody can compete with us because we have the biggest economy.”

When questioned about potential effects on inflation, Leavitt pointed to low inflation rates during Trump’s previous term, despite tariffs on Chinese goods.

“President Trump will take every measure to address the inflation crisis caused by the last administration and will continue to effectively use tariffs,” Leavitt said.

Tariffs from Trump’s first term were narrower in scope, with many exemptions for specific industries. Economists noted that those tariffs increased costs for certain imports, led to some job losses in manufacturing, and reduced corporate investments due to higher material costs.

Potential Economic Fallout

Mexico and Canada have already warned of retaliatory measures. Both countries may impose tariffs on American goods, potentially harming U.S. industries like agriculture, manufacturing, and energy.

Canadian Prime Minister Justin Trudeau stated Friday that he is working with U.S. officials to prevent the tariffs but assured that Canada is prepared to respond if they take effect.

“If the President proceeds with tariffs against Canada, we’re ready with a strong and measured response,” Trudeau said. “We’ll push back until these tariffs are lifted. Every option is on the table.”

During Trump’s first term, China responded to U.S. tariffs with duties on American agricultural products. Most of the revenue the U.S. collected from tariffs on China was redirected to support American farmers impacted by these retaliatory measures.

The U.S. auto industry is particularly vulnerable to the new tariffs on Mexico and Canada, as its supply chains are deeply integrated with these neighboring countries. Auto parts and vehicles often cross borders multiple times during manufacturing, so repeated 25% tariffs could significantly increase car prices.

U.S. agriculture could also be hit hard. Mexico is a major supplier of key produce like tomatoes, avocados, peppers, and berries. Food prices have already been a major concern, with grocery costs rising about 25% over the past four years—a topic Trump has frequently addressed in his campaign.

Tariffs on Canadian imports may also raise the cost of oil and lumber. Higher oil prices could affect fuel costs, while more expensive lumber could drive up housing and construction expenses.

As tensions rise, both allies and industries brace for the potential economic ripple effects.