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Trump Confirms 25% Tariffs on Canada and Mexico

Trump announced a 25% tariff on imports from Canada and Mexico, effective February 1. He also hinted at new tariffs on China, citing concerns over fentanyl and trade deficits.

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Trump Confirms 25% Tariffs on Canada and Mexico

US President Donald Trump confirmed that he will impose 25% tariffs on imports from Canada and Mexico starting February 1. However, he has not yet decided whether oil imports will be included.

Reasons Behind the Tariffs

Speaking from the Oval Office, Trump explained that the tariffs aim to address illegal immigration, fentanyl trafficking, and trade imbalances. As a result, he believes these measures will help strengthen border security and create fairer trade deals.

Trump Plans Tariffs on China

In addition to Canada and Mexico, Trump is also considering new tariffs on China. Earlier this month, he mentioned a 10% tariff but did not provide further details. Furthermore, he accused China of fueling the US fentanyl crisis, saying, “With China, I’m also thinking about something because they’re sending fentanyl into our country, and because of that, they’re causing us hundreds of thousands of deaths.” He added, “So China is going to end up paying a tariff also for that, and we’re in the process of doing that.”

Trade Tensions with China Rise

Previously, during his campaign, Trump threatened to impose tariffs of up to 60% on Chinese goods. However, after returning to office, he ordered a review instead of taking immediate action. Since 2018, US imports from China have declined, largely due to the tariffs imposed during Trump’s first term.

Meanwhile, at the World Economic Forum in Davos, Chinese Vice Premier Ding Xuexiang warned against protectionism. Instead, he emphasized the need for a “win-win” trade approach, though he avoided mentioning the US directly.

Canada and Mexico Push Back

In response, both Canada and Mexico announced plans to impose their own tariffs. At the same time, they reassured the US that they are taking steps to address border concerns.

Possible Impact on Energy Prices

If Trump includes oil in the tariffs, energy costs could rise significantly. Since the US imports 40% of its crude oil, mostly from Canada, higher import taxes could lead to increased gas prices. Consequently, businesses and consumers might face higher costs.

Although tariffs are meant to encourage local production, taxing essential imports could drive up inflation. Therefore, despite Trump’s promise to reduce the cost of living, these tariffs may ultimately make everyday goods more expensive.