WASHINGTON, D.C. — U.S. President Donald Trump says he will go ahead and impose 25% tariffs on imports from Canada and Mexico by February 1. The move, he says, is aimed at curbing both undocumented migration and fentanyl trafficking, as well as trade imbalances, that have sparked concerns of escalating trade tensions between the neighboring countries.
However, Trump noted that a decision regarding whether oil imports from Canada and Mexico would be subject to the tariffs is still pending. Addressing reporters from the Oval Office, he hinted at further actions against China, citing the ongoing fentanyl crisis as a key factor.
Tariffs on China Also Expected
Trump repeated his China stance, claiming that the country was fueling America’s opioid crisis. He said new tariffs on Chinese imports were in the works but did not elaborate. He had previously mentioned a 10% levy but also hinted at more severe measures.
“China is going to end up paying a tariff also for that, and we’re in the process of doing that,” Trump said.
Trump had threatened during his election campaign to impose up to 60% tariffs on Chinese-made goods. His administration is reviewing its trade policies and economists are already warning that renewed trade conflicts would disrupt global markets.
Possible Implications for Energy Prices
The decision to impose tariffs on Canadian and Mexican imports has been a cause of concern, particularly regarding its impact on U.S. energy costs. Almost 40% of the crude oil processed by U.S. refineries comes from Canada, and adding tariffs on those imports would increase fuel prices for American consumers.
Economists warn that tariffs on oil and other imported goods could lead to increased costs across industries, affecting everything from gasoline prices to grocery store bills.
Canada and Mexico Push Back
Both nations have expressed their intent to retaliate if tariffs are indeed imposed, with officials attempting to convince Washington that they are doing enough to contain border security and trade issues. Canada also agreed to negotiate to avoid the full-blown impact of the tariff war.
Meanwhile, China has called for a “win-win” approach to trade relations, emphasizing the need for cooperation over confrontation. Speaking at the World Economic Forum in Davos, Chinese Vice Premier Ding Xuexiang warned against protectionist policies without directly naming the U.S.
As February 1 approaches, businesses and consumers alike are bracing for the potential economic fallout from Trump’s aggressive trade stance.
