US President, Donald Trump has told reporters that he will follow through with his pledge to impose 25-percent tariffs on Mexico and Canada starting tomorrow, Saturday, February 1, 2025.
Speaking to reporters in the Oval Office, Trump said that the tariffs would begin at 25% and “may or may not rise with time.”
He added that he was making the threat “for a number of reasons” but that he wants both countries to do more to secure their borders to reduce illegal migration and the flow of fentanyl into the US.
Asked whether oil imports would be excluded from the tariffs, he replied, “we may or may not”, adding that it would depend on prices and whether the two countries treat the US “properly.”
According to data from the US Department of Energy, Canada and Mexico are the top two sources of US oil imports, accounting for 52% and 11% respectively in 2023.
The largest sector that would be affected by new tariffs would be cars and car parts, which accounted for $129bn worth of US imports from Mexico in 2023.
New tariffs are expected to pressure the bottom line of major US carmakers that have plants in Mexico, like General Motors, which could raise the prices of of SUVs and pick-up trucks for Americans.
There are a number of other items that could be affected.
Electric machinery and a wide range of parts and equipment, like motors and generators, and motor fuels, crude oil and petroleum coke.
Beverages and spirits including tequila, mezcal and beer, which make up a substantial portion of US imports, totalling almost $12bn in trade could be affected.
Also, Mexican agricultural products and commodities such as sugar, flour, meat and fresh fruit and vegetables, including avocados, will not be left out.
Progressive Congresswoman Pramila Jayapal slammed Trump’s plan to impose 25-percent tariffs on Canada and Mexico – two of the country’s largest trading partners.
Jayapal wrote in a social media post, “Trump announces 25% TAX on American families for all products imported from Canada and Mexico starting Saturday.”
Critics of Trump’s trade policies have been warning that tariffs will raise prices domestically as companies would pass the cost on to US consumers.
However, the US President has insisted that imposing steep fees on imported goods would revive American manufacturing and give firms no choice but to make their products in the US.
He also repeated threats to impose new tariffs on goods from China, citing its role in the fentanyl trade, and on the BRICS countries.
Mexican President Dispels Tariff Fears
Meanwhile, President of Mexico, Claudia Sheinbaum sought to dispel fears over how Trump’s looming tariffs threat will affect Mexico.
“We will always defend the dignity of our people, respect for our sovereignty and a dialogue as equals without subordination.
“We will wait, as I have always said, with a cool head, when taking decisions. We are prepared and we maintain this dialogue.”
Claudia Sheinbaum
On the other hand, Canada’s Prime Minister, Justin Trudeau said that Canada will respond immediately with a series of forceful countermeasures if Donald Trump goes ahead with a threat to impose tariffs.
Trudeau, in remarks to a meeting of an advisory council on Canada-US relations, said that if Trump does choose to implement any tariffs against Canada, “we’re ready with a response – a purposeful, forceful but reasonable, immediate response.” “It’s not what we want, but if he moved forward, we will also act,” Trudeau added.
Also, Trudeau said that his government has responded to what Donald Trump is “focused on and what is motiviating him to consider applying tariffs as early as tomorrow.”
Trudeau said at the meeting on Canada-US relations, “Our border is safe and secure.”
“Right now, we’re showing the new American administration that they have a strong partner in Canada when it comes to upholding border security, all while simultaneously underscoring that we won’t back down, that if tariffs are implemented against Canada, we will respond.
“We won’t relent until tariffs are removed and, of course, everything is on the table.”
Justin Trudeau
He added, “I won’t sugar coat it,” warning that Canadians “could be facing difficult times in the coming days and weeks.”
READ ALSO: BoG Governor Dr. Ernest Addison to Proceed on Terminal Leave Ahead of Retirement
