Trump plans to follow through with threat of 25% tariffs on Mexico and Canada

President Donald Trump announced on Thursday that he plans to move forward with imposing a 25 percent tariff on goods imported from Mexico and Canada, a move he initially threatened during the final days of the 2024 presidential campaign. The decision, which is set to take effect on Saturday, stems from what Trump describes as unfair trade practices and a variety of issues, including immigration and drug trafficking.

“We’ll be announcing the tariffs on Canada and Mexico for a number of reasons,” Trump told reporters from the Oval Office. He emphasized that the rising number of migrants crossing the southern border, the ongoing flow of fentanyl into the U.S., and the country’s trade deficit with its neighbors were key factors behind the move.

“I’ll be putting the tariff of 25 percent on Canada and Mexico, and we will really have to do that because we have very big deficits with those countries,” he said, hinting that these tariffs could potentially increase over time.

The president also signaled that his administration would consider whether to include oil among the goods subject to the tariffs, a decision he planned to finalize later that evening. “If the oil is properly priced, if they treat us properly, which they don’t, we may impose the tariff on that as well,” Trump added.

In a broader critique of U.S. trade relationships, Trump remarked, “Mexico and Canada have never been good to us on trade. They’ve treated us very unfairly, and we will be able to make that up very quickly because we don’t need the products that they have.”

The move to impose tariffs on Mexico and Canada is the latest chapter in Trump’s longstanding criticism of trade imbalances and foreign competition. The president’s previous threats to levy similar tariffs were tied to efforts to curb illegal immigration and drug smuggling, with Trump targeting Mexico in particular.

While the United States counts both Mexico and Canada as two of its top trade partners, experts have cautioned that such tariffs could lead to higher prices for American consumers on goods such as automobiles, electronics, and agricultural products. Additionally, economists warn that prolonged trade tension could negatively impact the economies of Mexico and Canada more significantly over time.

The tariffs are set to take effect just days after Trump’s announcement, and it remains to be seen how both countries will respond. In the meantime, American businesses and consumers are bracing for potential price hikes, while trade relations between the three countries remain in the balance.