Along with China and the European Union, Mexico and Canada are among the top trading partners of the United States. Experts warn that this move could escalate tensions and lead to significant disruptions in global trade.
Speaking to reporters in the Oval Office, President Donald Trump stated: “We will announce tariffs on goods imported from Canada and Mexico for several reasons. First, the large number of immigrants flooding into the United States.
Second, drugs, fentanyl, and everything else have been coming into the country. The third reason is the massive subsidies we are giving to Canada and Mexico in the form of trade deficits. I will impose a 25% tariff on Canada and Mexico. This step is necessary because we have a very large deficit with these countries. The tariff could increase or stay the same over time.”
As for oil, the US leader mentioned that this issue is still under consideration, and the decision will be based on whether the oil prices set by these two trading partners are fair.
The prospect of tariffs on oil from Canada and Mexico could undermine President Trump’s commitment to reducing overall inflation by lowering energy costs. Tariff-related costs could be passed on to consumers in the form of higher gas prices. During his campaign, Donald Trump promised to halve energy costs within a year and made this one of his top priorities during his presidency.
Matthew Holmes, Executive Vice President and Director of Public Policy at the Canadian Chamber of Commerce, warned that President Trump’s tariff measures would primarily affect American citizens by driving up the cost of living.
Canada will continue to work with its partners to show President Trump and the American people that this will not make life easier, but rather more expensive. However, in his remarks yesterday, President Trump dismissed this scenario, emphasizing that the US has enough oil and lumber to offset the gaps from Canada and Mexico.
In addition to these two countries, the US leader also warned of imposing tariffs on imports from China, the European Union, and even 100% tariffs on countries seeking alternatives to the US dollar as the global exchange medium.
A similar warning was issued by Trump in November 2024 regarding the BRICS group, which includes Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates.
Russian President Vladimir Putin stated that sanctions against Russia and other countries mean nations need to develop an alternative currency to the US dollar. Meanwhile, China has warned of the risk of a trade war, while also indicating that it is seeking a “win-win” solution to trade tensions and wants to expand its imports.
