President Donald Trump will put in place 25% tariffs on imports from Canada and Mexico and 10% tariffs on goods from China effective on Saturday, the White House said, but it provided no word on whether there would be any exemptions to the measures that could result in swift price increases to U.S. consumers.
Trump had been threatening the tariffs to ensure greater cooperation from the countries on stopping illegal immigration and the smuggling of chemicals used for fentanyl, but he has also pledged to use tariffs to boost domestic manufacturing and raise revenues for the federal government.
“Starting tomorrow, those tariffs will be in place,” White House press secretary Karoline Leavitt told reporters. “These are promises made and promises kept by the president.”
The tariffs carry both political and economic risks for Trump, who is just two weeks into his second term. Many voters backed the Republican on the promise that he could tamp down inflation, but the possibility of tariffs could trigger higher prices and potentially disrupt the energy, auto, lumber and agricultural sectors.
Trump had said he was weighing issuing an exemption for Canadian and Mexican oil imports, but Leavitt said she had no information to share on the president's decision on any potential carveouts.
The United States imported almost 4.6 million barrels of oil daily from Canada in October and 563,000 barrels from Mexico, according to the Energy Information Administration. U.S. daily production during that month averaged nearly 13.5 million barrels a day.
Trump has previously stated a 10% tariff on Chinese imports would be on top of other import taxes charged on products from the country.
Shortly after Leavitt spoke, the S&P 500 stock index sold off and largely erased its gains on the day.
Both Canada and Mexico have said they’ve prepared the option of retaliatory tariffs to be used if necessary, which in turn could trigger a wider trade conflict that economic analyses say could hurt growth and further accelerate inflation.
Canadian Prime Minister Justin Trudeau said Friday that Canada is ready is a respond if Trump goes ahead with the tariffs, but he did not give details.
“We’re ready with a response, a purposeful, forceful but reasonable, immediate response,” he said. “It’s not what we want, but if he moves forward, we will also act.”
Trudeau said tariffs would have “disastrous consequences” for the U.S, putting American jobs at risk and causing prices to rise. Trudeau reiterated that less than 1% of the fentanyl and illegal crossings into the U.S. come from Canada.
Mexican President Claudia Sheinbaum said Friday that Mexico has maintained a dialogue with Trump’s team since before he returned to the White House, but she emphasized that Mexico has a “Plan A, Plan B, Plan C for what the United States government decides."
“Now it is very important that the Mexican people know that we are always going to defend the dignity of our people, we are always going to defend the respect of our sovereignty and a dialogue between equals, as we have always said, without subordination,” Sheinbaum said.
A study this month by Warwick McKibbin and Marcus Noland of the Peterson Institute for International Economics concluded that the 25% tariffs on Canada and Mexico and 10% tariffs on China “would damage all the economies involved, including the US.’’
“For Mexico,’’ the study said, “a 25% tariff would be catastrophic. Moreover, the economic decline caused by the tariff could increase the incentives for Mexican immigrants to cross the border illegally into the US — directly contradicting another Trump administration priority.’’
AP writers Paul Wiseman in Washington, Jim Morris in Vancouver, Canada, and Christopher Sherman in Mexico City contributed.
© Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
58 Comments
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JJE
Boom!
And it happens.
sakurasuki
Let brace the impact! It's still only 25% compared that tariffs on any imported rice that got into Japan that face tariffs more than 700%, 25% still nothing
https://cigs.canon/en/article/20130314_1779.html
https://www.cnbc.com/2024/09/25/japans-largest-rice-shortage-in-years-exacerbated-by-sushi-hungry-tourists-.html
JeffLee
If any good comes out of this is maybe Canada will respond by gettig a lot tougher in tackling its horrendous illicit drug crisis, which has be allow to fester. The biggest case, involving fentanyl profits being laundered through casinos and real estate, is described as representing a level of criminality unprecedented in Canadian history -- yet there wasn't a single conviction due to a technicality involving one informant.
Hopefully, Canada will start throwing drug dealers, complicit bankers and drug users in jail (like Japan does).
ok1517
Strange!
Why 25% on Canada and Mexico, but only 10% on China?
Oh, I got it, President Musk is responsible for that deal.
Expect all this to backfire!
Donald and his administration will catapult the USA into a so-called third-world-country.
His decisions will not benefit "Mr. and Mrs Miller", just himself and his clan members.
S&P down since his election, prices increasing, people dying because they can't afford their needed medicine.
Expect more to come!
I'veSeenFootage
Great news for people who love inflation and high prices!
kokajp
Private citizens around the world need to boycott products made in the US and buy alternative ones from their own countries or from friendly trade partners.
ok1517
Donald:
"We'll be doing pharmaceuticals. Importantly in drugs and medicines, etc. All forms of medicine and pharmaceuticals. And we'll be doing very importantly steel and we'll also be doing chips. And things associated with chips."
Plans to impose tariffs on the EU: “The European Union has treated us so terribly.”
But of course: “Because I have common sense, okay?” (Donald)
bass4funk
We have more illegals from the North and South coming in.
What?
No, it won’t, they’ll buckle eventually
Quite the opposite
78% of Americans want the President to deport criminal illegals
That will change
People die every single day, to blame Trump without a single shrewd of verifiable and provable evidence is just completely irresponsible
Good times ahead
bass4funk
100%
He does. Colombia buckled. They can play hard, but in the end, they need the U.S., they’ll fold, be patient
proxy
The current Trudeau Liberal government in Canada has spent 10 years self inflicting damage on the Canadian economy and creating poverty. The Trump tariffs will be bad news for Canada but probably not as bad as what Trudeau has done.
bass4funk
Personally, I think 25% is way too low for a tariff.
ok1517
bass,
as always just posting the opposite?
Can you give me any reliable information as to what will happen or actually what is happening under the Trump administration?
And, please, facts, not fake news provided by that press secretary or her master!
By the way, press secretary. Seen this? "When you're flying with your loved ones, do you pray that your airplane lands safely and gets you to your destination or do you pray that the pilot has a certain skin color? I think we all know the answer."
Peter Neil
once again, press secretary barbie lied, saying that tens of millions of americans have died from fentanyl. it’s maybe 200k in the last 20 years.
about 760,000 americans died in car crashes in the same period.
gasoline prices are going to go up. get ready. everyone but trump (and maga people) know canada provides 50% of the oil used for gasoline. domestic oil can’t be used.
and how about those lumber and minerals? the u.s. housing prices are going up even more.
and chemicals from china used in everyday pharmaceuticals will be going too. more than you expect since trump killed the price cap on pharmaceutics last week. oh boy.
bass4funk
Just trying to correct the hysteria
No, neither can you, but you are projecting as if you know concretely what will happen and you don’t.
In other words, no facts and use only left-leaning feel good hit jobs? Naw, that’s ok
Liberals always, always make everything about color and race, this is the reason why they came up with DEI, color and race should never factor into this, experience and merit should be the only criteria for hiring anyone
MarkX
So Bass, you are ok with Trump unilaterally breaking a trade deal that he himself forced on the other two countries only a couple of years ago. So then you will have no problem with Ontario shutting off the electricity to Michigan, Wisconsin, and New York states? Hey, it is only an agreement and we have to stop all those guns and drugs that flow into Canada from the US, right?
bass4funk
To send back illegals? Absolutely.
They should go for it, I wish they would
Yes, I only care to get these criminal illegals out, how do you have the audacity to tell anyone you won’t even take back your own people???
But they want to play hard, ok…
iknowall
The US has been subsidizing these countries long enough.
stormcrow
China doesn't pay for tariffs. Americans pay for tariffs.
. . . Al Franken, former U.S. senator from MN
The Avenger
In the short run, financial markets could experience sharp swings. Equity markets might drop on fears of a trade war.
Global supply chains - already complex and interlinked - would face uncertainty and disruption, potentially contributing to higher inflation.
American importers and consumers would bear significantly higher costs on everyday goods.
Many multinational corporations would see plummeting revenues if trade relations collapse.
U.S. consumers would likely see higher prices on imported goods - everything from electronics to household items.
Sectors like agriculture, energy, and manufacturing could face declines in profitability and potential layoffs if retaliatory measures shut them out of key markets.
JJE
Trudeau is on the way out. Should common sense prevail between now and then, better times beckon for all.
Suddenly the media pundits are worried about the menace of inflation, which has been ravaging people for the last four years. How convenient.
bass4funk
A figure of speech, add to that people that are hooked and who haven’t died and on the streets it’s about right.
Yes
Well, then Canada should hurry and fix this, they can and should. Trudeau can be re-elected, Trump can’t, so he’s got nothing to lose.
Yes
Love it.
kwatt
Any prices will go up for sure, then they would have to pay more to buy ones in near future.
ok1517
bass,
again the left and liberals (how about the woke, too)?
Fact: S&P been going down since Donald's reign.
Fact: His so-called tariffs will fuel inflation.
Fact: once he imposes those tariffs also on Canada fuel prices will rise.
Fact: Donald so far hired the least qualified for his admin.
Fact: due to his "maneuvers" he will isolate the once great USofA!
travelbangaijin
Please refer to Justin Trudeau as "Outgoing Prime Minister" - thanks.
I'veSeenFootage
How about putting huge tarrifs on bronzer? America's GDP would jump to 10% from Trump's usage alone.
itsonlyrocknroll
The missing crucial element here is the twisted logic of/from the world of ego driven economists, experts that insist the retail world, globalism, long supply chains remain constant
Retail is driven by market forces, so often ignoring one crucial essential factor, the customer/consumer.
When “tariffs” hit the retail market shelves, inevitably the customer will walk away, subsequently the item subject to a punitive tariff is simply removed.
As night follows day.
Retail will not hold valuable shelf space for products they cannot sell.
Remember……
That cabal of Davos World Economic Forum delusional, some Nobel prize winners, respectfully live in state of dim-wittedness.
To live or be in an ivory tower is not to know about or to want to avoid the ordinary and unpleasant things that happen in people's lives: Academics sitting in ivory towers have no understanding of what is important for ordinary working people.
This below from Trudeau is an example of a foolish i suggest delinquent mistaken belief that customer choice at the checkouts mindlessly continues to purchase items that are unaffordable.
Trudeau said tariffs would have “disastrous consequences” for the U.S, putting American jobs at risk and causing prices to rise. Trudeau reiterated that less than 1% of the fentanyl and illegal crossings into the U.S. come from Canada.
GuruMick
I am unsure about the intersection of economic policy...tariffs...and immigration enforcement .
Surely the driver for "illegal immigration " is jobs in the shadow economy of...the USA.
Anything on penalties for employers who employ illegal entrants ?
Tokyo Guy
MAGA won't care if prices go up. They'll accept whatever Trump says. He could say that prices are going up because the respective leaders of Canada and Mexico are deep cover Democrat plants who are working to undermine his presidency, and MAGA will just swallow it like so much metaphorical jizz.
wallace
Trump's new taxes will be paid by the American consumer.
Are there tariffs on imported Canadian gas and oil?
lincolnman
Get ready for inflation to skyrocket and prices to go through the roof...
Just what you voted for - right MAGA-friends?
Two things you can count on with a Repub Prez - a war and a recession...
Underworld
OK time to ruin the American economy. Good one, Don.
bass4funk
You said it, I’m just agreeing with you.
Yes, so if Canada won’t police their borders, then so be it.
I mean, that’s the idea….
https://thehill.com/opinion/white-house/576478-amateur-hour-pete-buttigiegs-inexperience-exposed-as-supply-chain-breaks/
Facts
Then all they have to do is play fair
Jimizo
Oh wait! You’ll have to ‘unpack’ this one.
Who told you that the ‘media pundits’ were not commenting on inflation? I don’t know what media bubble you are living in. I saw ‘media pundits’ commenting on this with interviews with people commenting on how rising prices were hitting them hard.
This is classic ‘alternative media’ bubble-dwelling. They regurgitate what they are told - ‘the MSM isn’t telling you’ etc.
Stop being misinformed.
GuruMick
Rocknroll....price is determined by the interplay of supply and demand....usually...unless you add tariffs.
US consumers will have to have a US product to go to if the import becomes pricier.
This US product not always available , may not even exist in US production.
Ergo...US consumers will be stuck with the import, but now its 25% more in dollar terms.
SomeWeeb
And now literally everything will be 25-50% more expensive without replacements. This is why tariffs are stupid unless you build local industry first. And even then they are probably still stupid.
Bob Fosse
So you’re saying it’s now acceptable to give statistics about they you imagine to happen instead of what actually does. ‘Died’ actually includes people who are alive.
I see.
wallace
Tariffs will be imposed on oil, gas, steel, and aluminum from February 18th.
itsonlyrocknroll
Need to remove the Trump "red mist" goggles
At the mere mention of Donald Trump name, blood pressure soars, teeth grind, fists clench, furniture in close vicinity is in mortal danger being turned into firewood.
Trump and tariffs are second nature, remember the call "drill baby drill". closely followed by "To me, the most beautiful word in the dictionary is tariff".
And to make the blood boil over, US people November 2024 overwhelmingly agree.
Please try not to have a meltdown.
Especially with the threat to Medicare.
wallace
It's not a Canadian border. It's an American-Canadian border which American also needs to police.
bass4funk
We are, so you just defeated your own argument…again, so the responsibility is left just to the U.S. side? Well, that train left the station. Trudeau is in for a very rude awakening
TaiwanIsNotChina
Stock market just doesn't care what is coming for them. At least I have my stocks hedged.
Jimizo
Basic maths, and I mean very basic, refutes this claim.
Sums, eh?
GBR48
Trump should be left to wreck the US economy.
Reciprocal sanctions by Canada and Mexico will harm their own citizens and suggest they are just as dumb as Trump.
Peter Neil
chaos is the goal for trump. and musk.
they love chaos.
itsonlyrocknroll
GuruMick, with retail, there is always a choice, especially with perishables, if an home grown item its a question of "shop"
I time my "retail" pursuits, especially food and household goods, I grow my own seasonal vegs and fruits.
I stalk the shelves, normally at dusk, crouching behind my trolley wheels freshly oiled, I sometimes hone practice my swerve technique in the car park.
As the attendant manager half's the price my inner shopping "top gun" takes over
Then follows a lesson in stealth/pounce, as I am never alone, surrounded by hoards of poor "Ben-Hur" motivated pensioners vouchers ready. It sometimes get ugly.
Get the picture?
Trumps 25% tariffs and the number of retail outlet choices, will drive sector by sector behaviour to source from anywhere and everywhere.
itsonlyrocknroll
Jimizo, yes US election is a lot closer than I am suggesting,
Disruption bring change for better or for worse.
Jimizo
Certainly was. The ‘overwhelmingly agree’ claim comes across as partisan nonsense.
Keep it serious.
wallace
It's impossible to police the entire length of the Canadian-American border, which runs down the middle of some streets. The Great Lakes are a problem. Maybe Canada can build a wall and charge Trump for it.
Blacklabel
So actually “expert economists” haven’t even reviewed anything yet.
“Bloomberg) — President Donald Trump’s vow to unleash 25% tariffs on goods from Mexico and Canada has sent economists racing to estimate the impact on businesses and households across all three nations.
The potential fallout depend on the specifics of what Trump announces — the level of tariffs, the goods targeted or exempted and the duration they’re in place. It also depends on how Canada and Mexico respond.”
itsonlyrocknroll
Tariffs quotas are aimed tailored at the political/economic behaviours, of to the countries/states they are aimed at.
Retail will simply adapt refocus to the counties that are willing to fill the gaps.
bass4funk
The other way around actually…
Really now…
https://www.weforum.org/stories/2025/01/tariffs-trump-trade-modern-economies/
GuruMick
Itsonlyrocknroll....economics may not be your strong point.
Spending an hour lurking in a supermarket is an hour you could spend at work....earn more than save.
Take 25% increase in petrol for US cars . How does that help police the border , reduce drug imports etc ?
Wouldnt that cause US consumer to move to smaller cars....like ones made in Japan or Korea, or even China. ?
So impact on trade deficit ?
Tariffs will raise prices for US consumers and reduce their spending capacity.
Any structural changes in the economy on the US side, adapting to this will take years.
And I am not dumbing things down to "home grown vegies "
People cant drive a lettuce to work.
Underworld
itsonlyrocknroll
Not political. Purely economic.
Used to be popular, but they are a device where nobody wins and often cause trade wars.
That's why they are now avoided and the WTO was formed.
I'veSeenFootage
You obviously haven't read your own link.
plasticmonkey
You are right about everything. Our team is wrong about everything. That was decided in a landslide historic win for Trump, unrivaled in the history of the universe.
I hereby put my full faith in the economic genius of our Lord ‘n’ Savior, Donald Trump!
A new golden age of prosperity!
All hail!
Blacklabel
you do realize if these countries do what we ask politically, the tariffs are removed don’t you?
plasticmonkey
Also, it’s true that tens of millions of Americans have died from fentanyl overdoses. If Karoline Leavitt is lying, why did Trump win the election?
Common sense.
itsonlyrocknroll
Jimizo, I will try to view this whole "Trump thing" with respectful seriousness it demands.
Ramsay MacDonald a true socialist, one of UK Labour parties founders.
The man who saves time by galloping loses it by missing his way; the shepherd who hurries his flock to get them home spends the night on the mountain looking for the lost; economy does not consist in haste, but in certainty.
A true statement, lost on 21st century world leaders.
itsonlyrocknroll
GuruMick, thank you for the advice, I will strive to return to school to fulfil the urgent need to educate my basic lack knowledge on basic economic principals.
GuruMick
rocknroll..."Haste " is what is happening with the tariffs.
Past practice would be to start a tariff at say, 5% and see what happened.
Trump starts at 25%....that is haste.
And dont ignore the economic questions I raised above.
Avoidance....not a good technique in a serious argument .