White House confirms Trump’s tariffs on Canada, Mexico, and China starting February 1

US to enforce tariffs on key trade partners

US President Donald Trump will implement tariffs of 25% on imports from Canada and Mexico and 10% on Chinese goods, effective Saturday (February 1), according to White House spokesperson Karoline Leavitt.

Official statement on tariffs

Leavitt confirmed the decision during a White House press briefing on Friday, stating that the move directly targets illegal fentanyl trafficking.

“The President will be implementing tomorrow 25% tariffs on Mexico, 25% tariffs on Canada, and a 10% tariff on China for the illegal fentanyl that they have sourced and allowed to distribute into our country, which has killed tens of millions of Americans,” she said.

Conflicting reports on the implementation timeline

Earlier reports suggested that Trump might announce the tariffs but delay their enforcement until March 1, allowing a limited exemption process for certain imports. However, Leavitt dismissed this claim as false, confirming the tariffs would take effect immediately.

When asked about possible exemptions, she stated, “I do not have an update or readout for you on the exemptions.”

Impact on financial markets

Following the announcement, financial markets reacted sharply:

• The US dollar strengthened, particularly against the Mexican peso and Canadian dollar.
• Treasury bond yields increased.
• Stock markets declined, reflecting investor uncertainty.

Historical precedents in tariff implementation

Trump previously imposed tariffs on Chinese imports in 2018 and 2019, which required a 2-3 week delay for the US Customs and Border Protection to establish administrative procedures. However, this time, the White House insists that tariffs will be collected immediately.

North American trade disruptions

The tariffs could significantly impact North American trade, affecting $1.6 trillion in goods exchanged between the three nations annually. If enforced, this move could dismantle the free trade system that has linked the US, Canada, and Mexico for over 30 years.

Trump also hinted at an additional 10% tariff on Chinese imports, citing Beijing’s alleged role in fentanyl production and distribution. However, sources indicate that the March 1 tariffs would only apply to Canada and Mexico, leaving future actions on China uncertain.

Decision-making process and leadership

Tariff decisions are being managed by a core White House team, excluding the incoming trade officials. The process is not directly handled by Commerce Department nominee Howard Lutnick or US Trade Representative nominee Jamieson Greer, as neither has been confirmed by the Senate. Greer is scheduled for a confirmation hearing on February 6.

Trump has suggested potential exemptions for Canadian and Mexican oil imports, likely due to concerns about petrol prices. Crude oil is the largest US import from Canada and among the top five from Mexico.

Canada, Mexico react strongly

Canada prepares retaliatory tariffs

Canadian Prime Minister Justin Trudeau vowed a strong response to Trump’s decision.

“It’s not what we want, but if he moves forward, we will also act,” Trudeau stated.

Canada has already drafted countermeasures, including tariffs on Florida orange juice, a direct economic target linked to Trump’s home state. The government is considering a broader retaliation package worth up to C$150 billion, pending public consultations.

Mexico’s strategic approach

Mexican President Claudia Sheinbaum took a more measured stance, stating that she would “wait with a cool head” for Trump’s final decision. However, she warned that Mexico is prepared for negotiations and countermeasures if necessary.

“We will always defend the dignity of our people, respect for our sovereignty, and engage in equal dialogue without subordination,” Sheinbaum declared.

She also cautioned that the tariffs could result in the loss of 400,000 US jobs and higher consumer prices in the US.

Trump’s expanding trade actions

Trump’s aggressive trade policies extend beyond North America. Last week, he threatened to impose 25% tariffs on Colombia due to its refusal to allow US deportation flights. The dispute was resolved within 10 hours, with Colombian President Gustavo Petro agreeing to accept the flights.

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