US President Donald Trump is set to implement tariffs today, imposing a 25% duty on imports from Mexico and Canada, and a 10% duty on goods from China, according to the White House.
However, Trump indicated on Friday that Canadian oil would be subject to a reduced tariff of 10%, which may take effect on February 18.
The president also expressed intentions to levy tariffs on the European Union in the future, citing the bloc’s unfavorable treatment of the United States.
White House Press Secretary Karoline Leavitt stated that the tariffs on Canada and Mexico are a response to “the illegal fentanyl that they have sourced and allowed to distribute into our country, which has killed tens of millions of Americans.”
Trump has consistently asserted that these measures aim to address the significant influx of undocumented migrants crossing US borders, as well as to rectify trade imbalances with neighboring countries.
During a news briefing at the White House on Friday, Ms. Leavitt remarked, “These are promises made and promises kept by the President.”
During his election campaign, Trump had threatened to impose tariffs of up to 60% on Chinese products, but refrained from taking immediate action on his first day back in office, instead directing his administration to review the matter.
Since 2018, imports of goods from China to the US have stagnated, a trend that economists attribute in part to a series of escalating tariffs imposed by Trump during his initial term.
Earlier this month, a senior Chinese official cautioned against protectionist measures as Trump’s return to the presidency reignites the potential for a trade war between the two largest economies in the world, although he did not specifically name the US.
Speaking at the World Economic Forum in Davos, Switzerland, Ding Xuexiang, Vice Premier of China, emphasized that his country seeks a “win-win” resolution to trade disputes and aims to increase its imports.
China, Canada, and Mexico are the United States’ top trading partners, collectively accounting for 40% of the goods imported into the US last year. Concerns are mounting that the newly imposed tariffs could trigger a significant trade war and lead to increased prices within the US.