WASHINGTON: President Donald Trump will impose new tariffs on imports from Canada, Mexico, and China starting Saturday. Canada and Mexico will face 25% duties, while China will see a 10% tariff. Trump announced that Canadian oil would have a reduced 10% tariff, effective February 18. He also signaled future tariffs on the European Union.
Reasons for the Tariffs
White House press secretary Karoline Leavitt linked the tariffs to illegal fentanyl entering the U.S. from Canada and Mexico. She claimed the drug crisis had caused millions of American deaths. Trump also cited concerns over undocumented migrants crossing U.S. borders. Trade deficits with neighboring countries were another reason behind the decision.
Leavitt said the tariffs fulfilled Trump’s campaign promises. He had previously pledged strict trade measures. During his campaign, Trump proposed tariffs of up to 60% on Chinese goods. However, he delayed immediate action, opting for a policy review instead.
Economic Impact and Global Response
China, Canada, and Mexico are key U.S. trading partners. Together, they supply 40% of all imported goods. Economists warn these tariffs could spark a trade war and raise prices in the U.S. Canadian Prime Minister Justin Trudeau said his country would respond if the tariffs proceed.
Canada and Mexico are considering countermeasures against the U.S. Meanwhile, China has criticized rising protectionism. At the World Economic Forum, Chinese Vice Premier Ding Xuexiang called for a “win-win” trade solution. However, he did not mention the U.S. directly.
Potential Effects on Consumers
Higher tariffs on Canadian and Mexican oil could increase fuel prices. This move contradicts Trump’s pledge to lower living costs. Tariffs could also raise prices on everyday goods, from groceries to household products. Many economists expect inflation to rise.
Around 40% of crude oil processed in U.S. refineries comes from Canada. The added costs may be passed to businesses and consumers. Former central bank chief Mark Carney warned tariffs could slow economic growth. He also said they could harm the U.S. reputation globally.
