U.S. President Donald Trump will enact 25% tariffs on imports from Canada and Mexico and 10% tariffs on goods from China beginning Saturday, the White House said.
"Both Canada and Mexico have allowed an unprecedented invasion of illegal fentanyl that is killing American citizens, and also illegal immigrants into our country," White House press secretary Karoline Leavitt said during her briefing Friday.
Leavitt did not say whether there would be any exemptions to the measures.
"These are promises made and promises kept by the president," she said.
Asked by reporters Friday, Trump said there was nothing the three countries could do to reverse his decision and that the tariffs were "not a negotiating tool."
"It's a pure economic — we have big deficits with, as you know, with all three of them," Trump said. "We're not looking for a concession, and we'll just see what happens."
Trump said that he would tariff Canadian crude oil imports at 10% beginning Saturday. Other Canadian goods would be hit with a 25% tariff.
The president vowed to impose sweeping tariffs on semiconductors, pharmaceuticals, steel and aluminum, and oil and gas.
"All forms of medicine and pharmaceuticals," Trump said. "And we'll be doing, very importantly, steel, and we'll also be doing chips and things associated with chips."
Tariffs on oil and gas will be imposed "around the 18th of February," Trump said. He signaled that other tariffs would be imposed in the coming weeks, without providing exact dates.
Trump warned he would "absolutely" place tariffs on goods from the European Union.
"They're treating us so badly," he said.
Outgoing Canadian Prime Minister Justin Trudeau said his country would respond.
"We're working hard to prevent these tariffs, but if the United States moves ahead, Canada's ready with a forceful and immediate response," he posted on social media.
Meanwhile, Mexico had a more muted response. Its economic ministry posted a message on social media saying that Mexico and the United States were "partners, not competitors."
Tariffs could backfire
China, Mexico and Canada account for more than one-third of the goods and services imported to or bought from the United States.
Some economists warn that the tariffs could backfire.
Imports from Mexico and Canada make up around 3% of U.S. GDP, while exports make up around 2.5% percent of U.S. GDP, said Brad Setser, a senior fellow at the Council on Foreign Relations
A 25% tariff on Mexico and Canada amounts to a "tax hike on imports from those countries" and will "have an immediate and negative impact on the U.S. economy," he told VOA. "It's a strategy for shrinking the U.S. economy."
Trump has long threatened to impose tariffs to pressure countries to help his administration stop illegal immigration and the smuggling of chemicals used for fentanyl. He has pledged to use tariffs to boost domestic manufacturing and has praised its use as an effective economic policy.
Trump believes that "tariffs are a great source of leverage," and that he will "convince Canada and Mexico to make big concessions under the threat of tariffs," Setser said. "But these measures are going to be pretty costly to the U.S."
Trump acknowledged that the tariffs might cause a "short-term disruption" for consumers but said it would lead to a long-term benefit for U.S. manufacturing.
"Tariffs don't cause inflation. Tariffs cause success," he added.
During his first administration in 2018, Trump negotiated and signed the United States-Mexico-Canada free trade agreement, in part to narrow the United States' big trade deficit — the gap between what it sells and what it buys — with its neighbors. He once called the deal "the fairest, most balanced and beneficial trade agreement we have ever signed into law."
However, the U.S. deficit in the trade of goods with Mexico has widened from $106 billion in 2019 to $161 billion in 2023, according to government data. The trade gap in goods with Canada has also increased, from $31 billion in 2019 to $72 billion in 2023.
"He's now acting like his deal caused a disaster needing an emergency fix," said Derek Scissors, a senior fellow at the American Enterprise Institute.
There's no justification for high tariffs on Canada, a market economy that's not in the top five of U.S. trade deficits, Scissors said.
"Fentanyl shipments across the Canadian border are tiny," he added.
Fentanyl and illegal migration are justifications for border restrictions on Mexico, Scissors said. However, tariffs "don't stop illegal immigration and probably encourage it by threatening jobs in Mexico."
The stock market erased early gains and closed lower Friday after the White House announcement on tariffs.