Trump Readies Order for Steep Tariffs on Goods From Mexico, Canada, China

1/2/2025 15:43

U.S. President Donald Trump is expected to sign an order on Saturday imposing hefty new tariffs of 25% on goods from Mexico and Canada and 10% on imports from China, potentially disrupting more than $2.1 trillion worth of annual trade.



Trump said on Friday that there was little that the top three U.S. trading partners could do to forestall the tariffs.



He set the Feb. 1 deadline to push them to take strong action to halt the flow of fentanyl and precursor chemicals into the U.S. from China via Mexico and Canada, as well as to stop illegal immigrants from crossing southern and northern U.S. borders.



But during a lengthy White House exchange with reporters, Trump brushed aside the notion that his tariff threats were merely bargaining tools.



Trump did, however, reference a potential carve out for oil from Canada, saying that tariff rate would be 10% versus the 25% planned for other Canadian imports. But he indicated wider tariffs on oil and natural gas would be coming in mid-February, remarks that sent oil prices higher.



Crude oil is the top U.S. import from Canada, reaching nearly $100 billion in 2023, according to U.S. Census Bureau data.