Trump Moves Forward with Tariffs on Canada and Mexico, Citing Trade Deficit and Border Issue

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Former President Donald Trump announced that his administration will proceed with imposing 25 percent tariffs on goods imported from Mexico and Canada, making good on a threat he first issued during the final days of his 2024 campaign. The decision, set to take effect on Saturday, is aimed at addressing what Trump described as unfair trade practices, an influx of migrants at the southern border, and the flow of fentanyl into the United States.  

 

“We’ll be announcing the tariffs on Canada and Mexico for a number of reasons,” Trump told reporters in the Oval Office. He emphasized the U.S. trade deficit with its neighbors, stating, “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. Those tariffs may or may not rise with time.”  

 

Trump also revealed that his administration was considering including oil in the list of tariffed goods, with a final decision expected later that evening.  

“We may or may not. We’re going to make that determination, probably tonight, on oil. Because they send us oil, we’ll see. It depends on what the price is. If the oil is properly priced, if they treat us properly, which they don’t,” Trump said.  

 

He further justified the tariffs by accusing both Canada and Mexico of exploiting the United States in trade agreements. “Look, Mexico and Canada have never been good to us on trade,” he said. “They’ve treated us very unfairly on trade, and we will be able to make that up very quickly because we don’t need the products that they have.”  

 

Trump originally issued the tariff threat in response to what he described as Mexico’s failure to curb illegal immigration at the U.S.-Mexico border. While initially targeting Mexico, he later expanded his proposal to include Canada and even China.  

 

Both Mexico and Canada are among the United States' largest trading partners, and economic experts have warned that these tariffs could lead to increased prices for American consumers on a variety of goods. However, they also suggested that while American industries may face short-term disruptions, Mexico and Canada’s economies could suffer more in the long run if a prolonged trade war ensues.  

 

Despite these warnings, Trump remained steadfast in his stance, making it clear that his administration is prepared to use tariffs as a tool to reshape trade relationships. Whether these measures will result in renegotiations with America’s neighbors or escalate tensions further remains to be seen.

 

Based on a report by The Hill 2025-02-01