On Thursday, former President Donald Trump reaffirmed his plan to impose tariffs on Canada and Mexico, set to take effect on Saturday, though he acknowledged that the final details are still under discussion.
The move is significant because Canada and Mexico are among the United States’ largest trading partners, and the ongoing tariff threats have raised concerns about a potential trade war that could have widespread economic repercussions.
During a question-and-answer session in the Oval Office, Trump emphasized that he believes both nations have taken advantage of the U.S. in trade deals for years. “Mexico and Canada have never been good to us on trade. They’ve treated us very unfairly,” he stated. “We don’t need what they have.” His comments reflect his long-standing criticisms of trade agreements such as NAFTA and its successor, the USMCA, which he has argued favor foreign countries over American industries.
While Trump remained firm on the idea of new tariffs, he suggested that they may not apply across the board. He specifically mentioned Canadian oil imports as a possible exemption, saying, “We may or may not, we’re going to make that determination tonight.”
Previously, Trump had floated the idea of a 25% tariff on goods from both countries. According to S&P Global Ratings, such tariffs would hit Mexico’s auto industry and Canada’s paper and rubber industries particularly hard. Economic analysts warn that both countries are likely to retaliate with their own tariffs if the plan moves forward. Following Trump’s announcement, the U.S. dollar surged to its highest level against the Canadian dollar in five years, indicating market reactions to the potential trade disruption.
In addition to these tariffs, Trump had earlier mentioned a 10% tariff on Chinese imports set to begin on February 1. However, on Thursday, he appeared less committed to that timeline. Instead, he said he was considering tariffs against China due to the country’s alleged role in the flow of fentanyl into the United States. “China is going to end up paying a tariff also for that, and we’re in the process of doing that,” he said. “We’ll make that determination soon.”