President Donald Trump will enact tariffs on imports from Mexico, Canada and China starting Saturday– despite reports claiming the administration was looking for more targeted measures.
“The president will be implementing, tomorrow, a 25 percent tariffs on Mexico, 25 percent tariffs on Canada and a 10 percent tariff on China for the illegal fentanyl that they have sourced and allowed to distribute into our country which has killed tens of millions of Americans,” White House Press Secretary Karoline Leavitt said during her Friday briefing.
Leavitt made the claims after a Wall Street Journal report that stated members of the administration hoped to find more targeted measures rather than sweeping tariffs.
The White House as now denied those reports.
Staff was reportedly looking at measures that would use specific tariffs on steel and aluminum – similar to those Trump enacted during his first term – or exclude oil.
During his first administration Trump got the U.S. into a trade war with China – something he hinted he could bring back while on the campaign trail. The president used tariffs as a political tool to punish those he believes treats the U.S. unfairly.
But economists have feared that sweeping tariffs such as the 25 percent on Mexico and China could increase inflation, one of the top economic issues for Americans.
Tariffs put an additional tax on imports from the impacted countries by requiring U.S. retailers that import the goods to pay an additional fee. To sidestep the additional fee, retailers can either choose other manufacturers either based in the U.S. or another country or they can increase the cost of the product thereby hurting consumers.
On Thursday, Trump affirmed to reporters he was “in the process” of enacting tariffs on the United States’s neighbors to the north and south – which could have major impacts on the economies of the two nations.
“We’re going to make that determination probably tonight on oil. Because they send us oil, we’ll see – it depends on what their price is,” Trump said Thursday.
Trumps claims the tariffs are necessary to incentivize Canada and Mexico to enact stricter border policies to stop the flow of drugs, particularly fentanyl, into the U.S. The president has also said it would balance the trade partnership with both countries, which he believes disadvantages the U.S.
The U.S. imports a host of goods from the three nations that are set to face Saturday’s tariffs. The biggest imports from Canada into the U.S. are energy – with experts saying a 25 percent tariff will drive up oil costs and hurt consumers at the gas pump. In 2023, about 60 percent of crude oil imports came from Canada.
Canada is also a major importer of lumber, food and other goods.
The U.S. gets consumer electronics, cars and other products from Mexico. Approximately 2.6 million vehicles are imported from Mexico. The country to the south of the U.S. is also a major food provider, as 63 percent of vegetable imports come from Mexico. A 25 percent tariff could lead to higher prices at the grocery store for Americans.
