Trump to hit Canada, Mexico and China with tariffs on Saturday

US President Donald Trump announced on Friday that he will impose tariffs starting Saturday: 25% on Mexico and Canada, and 10% on China. However, Canadian oil will face a reduced tariff of 10%, set to take effect on February 18.

Trump also indicated plans to impose future tariffs on the European Union, criticizing the bloc for not treating the US fairly.

White House press secretary Karoline Leavitt explained that the tariffs on Canada and Mexico are in response to the illegal fentanyl trafficking they have allowed, which has contributed to tens of millions of American deaths.

Trump has repeatedly stated that his trade policies, including tariffs, are aimed at addressing the significant number of undocumented migrants crossing U.S. borders and reducing trade deficits with neighboring countries.

At a White House briefing on Friday, Ms. Leavitt emphasized, "These are promises made and promises kept by the President."

During his campaign, Trump threatened to impose tariffs of up to 60% on Chinese-made goods, but on his first day back in office, he opted to delay any immediate action, instead directing his administration to conduct further studies on the issue.

Economists have noted that U.S. imports from China have stagnated since 2018, partly due to the series of escalating tariffs Trump imposed during his first term.

Potential retaliations from Canada, including measures on products like booze, oil, and orange juice, are raising concerns. While China had been hard-hit by Trump's previous tariffs, it is now preparing to respond to the renewed trade tension under Trump's return. A Chinese official recently cautioned against protectionism, advocating for a "win-win" trade resolution but refraining from specifically targeting the U.S.

With China, Canada, and Mexico accounting for 40% of U.S. goods imports, there are growing concerns that new tariffs could spark a major trade war, potentially raising prices for U.S. consumers.

Canadian Prime Minister Justin Trudeau warned on Friday, "It's not what we want, but if he moves forward, we will also act." Both Canada and Mexico have pledged to retaliate, while also signaling their efforts to address U.S. concerns about border security.

The U.S. has not yet received a formal response from the Chinese embassy.

If tariffs are imposed on Canadian and Mexican oil, it could undermine Trump's promises to reduce living costs in the U.S., as higher energy prices could lead to increased costs across various sectors, from gas to groceries. Around 40% of the crude oil used in U.S. refineries is imported, with most of it coming from Canada.

Trump acknowledged on Friday that tariffs could ultimately be passed on to consumers, potentially causing short-term disruptions.

Mark Carney, former head of the central banks of both Canada and England, warned that these tariffs could slow economic growth and drive inflation, ultimately damaging the U.S.'s global reputation. Carney, who is also a potential candidate to succeed Trudeau as leader of Canada's Liberal Party, voiced concerns about the broader economic impact.