Trump Issues Warning: 25% Tariffs on Canada and Mexico Set to Take Effect Saturday

January 31, 2025 TruthUSA

The leaders of both Mexico and Canada have indicated they will respond in some form.

On Thursday, President Donald Trump announced that he is likely to implement 25 percent tariffs on Mexico and Canada starting February 1.

“I will be imposing a 25 percent tariff on Canada and Mexico, as we need to address the significant deficits we have with those nations,” he told reporters in the Oval Office. “These tariffs may increase over time.”

He stated that the administration intends to enforce these tariffs “for several reasons,” including the surge of illegal immigration at the U.S.–Mexico border, the trafficking of fentanyl, and the trade deficit with both countries.

Trump previously revealed these tariffs shortly before his election in November. After taking office, he confirmed they would commence on Saturday.

A decision regarding an exemption for oil imports would be made on Thursday night, as indicated by Trump.

“We may or may not make that determination this evening regarding oil. Because they supply us with oil, we will assess it based on the pricing. If the oil is appropriately priced, and if they treat us fairly—which they don’t,” Trump commented.

Further elaborating, he remarked that “Mexico and Canada have never treated us well concerning trade” and have “treated us very unfairly in trade, allowing us to quickly rectify that since we don’t rely on their products.”

For years, the United States, Canada, and Mexico have been allies under the North American Free Trade Agreement (NAFTA) and subsequently the U.S.–Mexico–Canada Agreement (USMCA), two significant trade deals.

On Thursday, Trump also referenced a 10 percent additional tariff on China that he had proposed last year to penalize the country for its role in the production of fentanyl precursor chemicals. Nonetheless, he was indecisive about moving forward with that action.

“China will also bear the cost of a tariff for that, and we are in the process of determining the specifics … we’ll reach a decision on that soon,” he told reporters.

The leaders of Mexico and Canada have expressed that their nations will retaliate against the United States in response to the tariffs, whereas Ontario Premier Doug Ford has indicated that his province might cease energy supplies to the United States as a countermeasure.

“Every region in our country would feel the consequences of potential U.S. tariffs. We are fully aware of what’s at stake here. We are working tirelessly to avert them—and are prepared to issue a robust, national response if necessary,” Canadian Prime Minister Justin Trudeau stated on Wednesday in a post on social media platform X.

Earlier this week, Mexican President Claudia Sheinbaum expressed skepticism that Trump would actually impose the 25 percent tariffs but referenced possible actions her government might take. Approximately 80 percent of Mexico’s exports are directed to the United States, the largest economy in the world.

“We do not anticipate this occurring,” Sheinbaum declared during her regular morning briefing. “However, if it does happen, we do have our contingency plan.”

Reuters contributed to this report.

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