Trump tariffs on Canada, Mexico and China
- Timmothy Chen
- Jan 31
- 2 min read
Updated: Feb 3
On Friday, Jan. 31, White House Press Secretary Karoline Leavitt confirmed that President Donald Trump will follow through on a 25% tariff on imports from Canada and Mexico and a 10% tariff on China, which will begin Saturday, Feb. 1. Leavitt stated that these measures primarily serve to address issues regarding smuggling fentanyl and illegal immigration.
Leavitt emphasized that both Canada and Mexico have allowed for large amounts of fentanyl and migrants to enter the United States through illegal means. The tariffs are intended to punish and pressure those nations to enforce stricter laws.
“[The tariffs are for] the illegal fentanyl that they have sourced and allowed to distribute into our country, which has killed tens of million of Americans. These are promises made and promises kept by the president,” Leavitt said.
Critics argue that the new tariffs are bound to cause increased consumer prices. Potential retaliation by other countries could also affect U.S. citizens, as China, Canada, and Mexico, exported $94 billion in goods to these countries in 2023. Economists warn that consumers may see higher costs on things like food, with companies passing down the extra prices to consumers.
In the case of the U.S. 's neighboring northern country, “We anticipate Canada would then respond in kind by also implementing a 25% across-the-board tariff on U.S. imports," Satyam Panday, chief U.S. and Canada economist with S&P Global Ratings, said in an email.
The financial markets suffered negatively to the news. U.S. stock indexes, which were initially doing well, have dropped. Investors express concerns with inflation and economic loss.
“The S&P 500 fell 0.5% and the Nasdaq composite dropped 0.3%. The indexes, which had posted solid gains in morning trading, posted their first weekly loss in three weeks,” Stan Choe and Damian J. Troise wrote in an article from AP News.
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