Trump Unveils Tariffs Targeting Trade with Canada, Mexico, and China

President Donald Trump of the United States is set to impose new tariffs of 25% on imports from both Mexico and Canada, and 10% on those from China, starting Saturday, February 1, as confirmed by White House sources. This action targets three of Washington's key trading partners, based on allegations that these nations have allowed the distribution of fentanyl within the U.S. The move could have significant repercussions on the global economy, affecting thousands of products and critical trade sectors, several experts highlighted in statements to CNN.

During a press briefing, White House spokesperson Karoline Leavitt emphasized that the president is making good on his promise to implement these tariffs, stating they are a response to the "illegal fentanyl that has killed tens of millions of Americans." Leavitt also mentioned that no further specifics would be provided, such as whether exemptions would be granted or if specific products like oil would be impacted. Analysts, however, anticipate a potential surge in inflation within the country.

In the face of these impending tariffs, Canadian Prime Minister Justin Trudeau issued a warning that his country will respond "strongly and immediately." In a message on X (formerly Twitter), Trudeau stressed that "nobody on either side of the border wants to see American tariffs on Canadian products" and assured that his government is working diligently to prevent this measure. Nevertheless, if the tariffs are enacted, Canada has already prepared a response, he emphasized.

Amid this situation, Canadian officials met this Friday with Tom Homan, the White House's border czar, in a last-ditch effort to reach an agreement that would avert the tariffs' implementation. The primary topics of discussion included controlling fentanyl trafficking and immigration issues.

Trade relations between Canada and the U.S. have been a persistent source of tension during Trump's presidency, particularly as he has questioned Canada's trade surplus with the U.S. Official data indicates that Canada exported goods worth $377 billion to the U.S. in 2024, with a surplus of $55 billion, which has frustrated the American administration. This diplomatic challenge could escalate if the tariffs are applied, and a delegation of provincial leaders from Canada is expected to visit Washington on February 12 to push for a resolution.

Meanwhile, the Mexican government is closely monitoring the new U.S. administration's announcements and has not yet issued any formal statements. However, it indicated this morning that it would "cool-headedly" assess each development. The current focus is primarily on negotiations with Canada; nonetheless, analysts predict that the repercussions of this measure will affect not only bilateral relations but also global markets.

The new tariffs will impact several imported products, potentially driving up the prices of essentials—from vehicles to consumer goods—affecting both businesses and consumers. American companies and consumers are already bracing for the possibility of a sharp increase in prices for a wide range of products, including avocados, gasoline, lumber, and vehicle components. As import costs rise, the final price of products for consumers is likely to increase, possibly triggering a return to inflation, a major issue that hurt American consumers during Joe Biden's presidency and played a key role in the Democratic electoral defeat.

Additionally, these tensions could negatively impact broader trade negotiations between the three countries, which have been vital for the economies of North America. Trump has also stated that he is ready to impose tariffs on European Union countries, the U.S.'s primary trading partner.