The White House says Canada, Mexico, and China will face tariffs on Saturday

US President Donald Trump will impose tariffs starting Saturday: 25% on Mexico, 25% on Canada, and 10% on China, according to the White House. However, Trump clarified that Canadian oil will face lower tariffs of 10%, effective February 18. The president also mentioned plans to impose tariffs on the European Union in the future, citing unfair treatment.

White House Press Secretary Karoline Leavitt stated that the tariffs on Canada and Mexico are in response to the illegal fentanyl trade, which has contributed to millions of American deaths. Trump has also tied these actions to his concerns over undocumented immigration and trade imbalances.

During his election campaign, Trump threatened tariffs on Chinese-made goods up to 60%, though he refrained from immediate action upon returning to office, instead ordering a study. Imports from China have remained flat since 2018 due to escalating tariffs.

China, Canada, and Mexico are the US’s top trading partners, making up 40% of imports. There are growing concerns these new tariffs could trigger a trade war and raise prices in the US. Canadian Prime Minister Justin Trudeau warned that Canada would respond if tariffs are enforced.

Both Canada and Mexico have pledged to retaliate if the tariffs go forward, while also working to address US border security concerns. The imposition of tariffs on oil imports could undermine Trump’s goal of reducing living costs, as they could drive up energy prices.

Mark Carney, former head of Canada’s and England’s central banks, warned that the tariffs will hurt economic growth and raise inflation, also damaging the US’s global reputation.