President will implement 25% tariff on Mexico, 25% tariff on Canada and 10% tariff on China: spokesperson
UPDATE — 1:30 p.m. ET: White House Press Secretary Karoline Leavitt says U.S. President Donald Trump’s deadline on tariff still stands as Feb. 1, despite reporting to the contrary on Friday.
“I saw that [Reuters] report and it is false,” she said during a White House briefing.
“I was just with the president in the Oval Office and I can confirm that tomorrow, the February 1st deadline that President Trump put into place in a statement several weeks ago, continues. The president will be implementing tomorrow a 25 per cent tariff on Mexico, 25 per cent tariff on Canada and a 10 per cent tariff on China.”
EARLIER STORY:
U.S. President Donald Trump is expected to announce new tariffs against Canada and Mexico that will begin on March 1, but will include a process for the countries to seek specific exemptions for certain imports, three people familiar with the planning told Reuters.
The tariff situation remained fluid on Friday and no decision is final until Trump makes a public announcement.
The Reuters sources, who asked not to be named because they are not authorized to speak publicly on the matter, said they did not have details on a final tariff rate, but noted Trump has consistently said that he plans to impose a 25 per cent tariff on imports from the two countries on Saturday.
Separately, an administration official said Trump on Friday was reviewing tariff plans, which may allow for some exemptions. Still, any exemptions would be “few and far between,” the official said.
The decision to impose tariffs stands to seriously harm both the diplomatic and economic relationships between two countries which are typically close allies, with significant implications for major industries — like energy and automotive — that have long thrived under a variety of free trade agreements. If Ottawa retaliates with its own tariffs as promised, it would amount to a trade war, which could mean higher prices and job losses nationwide.
The trading relationship between Canada and the U.S. is enormous, to put it mildly. Roughly $3.6 billion worth of goods went back and forth over the border every day in 2023, according to Ottawa, making the relationship worth a trillion dollars a year.
Out of all the goods Canada exports to other countries, more than three-quarters goes to its southern neighbour. The automotive and agriculture sectors are key, but oil and gas lead the pack: Roughly 80 per cent of Canada’s oil and 60 per cent of its natural gas go to the United States.
The move also means Canadian companies will have a harder time selling to American importers, since those importers will have to pay the tariffs. Canadian exporters will need to cut prices, and sacrifice profit, to offset the tax or try to find a patchwork of new buyers to make up for losing American business.
