Trump’s new tariffs target Canada, Mexico, China

President Donald Trump is set to impose fresh tariffs on Saturday on major US trading partners — Canada, Mexico, and China — threatening disruption across supply chains from energy to automobiles.

Trump has promised 25 per cent tariffs on Canada and Mexico, citing their alleged failure to curb illegal immigration and the flow of fentanyl into the US.

He has also pledged a 10 per cent tariff on imports from China, the world’s second-largest economy, accusing it of involvement in synthetic opioid production.

Trump has frequently expressed his enthusiasm for tariffs and has hinted that Saturday’s action could be the first step in further trade disputes.

This week, the US president vowed to impose duties on the European Union.

He has also promised tariffs on semiconductors, steel, aluminium, copper, pharmaceuticals, as well as oil and gas.

Trump returned to his Mar-a-Lago estate in Florida for the weekend with no public events on his official schedule. On Saturday morning, he headed to the golf course.

Canadian public broadcaster CBC reported on Saturday that Ottawa has been informed to expect 25 per cent across-the-board US tariffs, although energy imports would face a lower rate of 10 per cent.
These tariffs are expected to take effect on Tuesday, according to CBC.

Canadian Prime Minister Justin Trudeau is set to hold a press conference at around 6:00 pm (0000 GMT), two Canadian government sources told AFP.
Growth Concerns
Imposing sweeping tariffs on three key US trading partners carries risks for Trump, who secured victory in the November election partly due to public dissatisfaction over the cost of living.

Higher import costs would likely “dampen consumer spending and business investment,” said EY chief economist Gregory Daco.

He expects inflation to rise by 0.7 percentage points in the first quarter of this year due to the tariffs, before gradually easing.

“Rising trade policy uncertainty will heighten financial market volatility and strain the private sector, despite the administration’s pro-business rhetoric,” he added.

Trump’s supporters have downplayed fears that tariff hikes will fuel inflation, suggesting his planned tax cuts and deregulation measures could instead boost economic growth.

Democratic lawmakers have criticised Trump’s plans, with Senate Minority Leader Chuck Schumer stating on Friday: “I am concerned these new tariffs will further drive up costs for American consumers.”

Canada and Mexico are major suppliers of US agricultural products, with imports from each country amounting to tens of billions of dollars per year.

Tariffs would also severely impact the auto industry, as US light vehicle imports from Canada and Mexico in 2024 accounted for 22 per cent of all vehicles sold in the country, according to S&P Global Mobility.

The research group also noted that automakers and suppliers manufacture components throughout the region, meaning tariffs would likely increase vehicle costs.
Ready to Respond
Canada and Mexico have signalled they are prepared if Trump proceeds with his tariff plan.

Trudeau stated on Friday that Ottawa is ready with a “purposeful, forceful” response.

Doug Ford, premier of Ontario—Canada’s economic powerhouse—warned on Saturday that “the impact of these tariffs will be felt almost immediately,” predicting job losses and a slowdown in business.
Canada should “hit back hard and hit back strong,” he said at a local election campaign event.

Mexican President Claudia Sheinbaum previously stated that her government would await any announcement “with a cool head” and had prepared contingency plans.

However, White House Press Secretary Karoline Leavitt on Friday dismissed concerns of a trade war.

Hiking import taxes on crude oil from countries like Canada and Mexico could have “huge implications for US energy price

The post Trump’s new tariffs target Canada, Mexico, China appeared first on 36ng.