Retaliation expected from top three US trading partners as Trump readies order for steep tariffs
WASHINGTON – U.S. President Donald Trump is expected to sign an order on Saturday imposing hefty new tariffs of 25% on goods from Mexico and Canada and 10% on imports from China, a move that could provoke retaliatory measures and disrupt more than $2.1 trillion in annual trade.
Trump, who is working from his Mar-a-Lago estate in Florida this weekend, said on Friday that there was little that the top three U.S. trading partners could do to forestall the tariffs.
He set the Feb. 1 deadline to push them to take strong action to halt the flow of fentanyl and precursor chemicals into the U.S. from China via Mexico and Canada, as well as to stop illegal immigrants from crossing southern and northern U.S. borders.
But during a lengthy White House exchange with reporters, Trump brushed aside the notion that his tariff threats were merely bargaining tools.
“No, it’s not … we have big (trade) deficits with, as you know, with all three of them.”
He also said that revenue was a factor and the tariffs may be increased, adding: “But it’s a lot of money coming to the United States.”
Trump did, however, reference a potential carve-out for oil from Canada, saying that the tariff rate would be 10% versus the 25% planned for other Canadian imports. But he indicated wider tariffs on oil and natural gas would be coming in mid-February, remarks that sent oil prices higher.
Crude oil is the top U.S. import from Canada, reaching nearly $100 billion in 2023, according to U.S. Census Bureau data.
Furthermore, the U.S. President announced that more tariffs are coming, saying import taxes were being considered on European goods, as well as on steel, aluminium, and copper, and on drugs and semiconductors.
Accordingly, Canada has drawn up detailed targets for immediate tariff retaliation, including duties on Florida orange juice, a source familiar with the plan said.
Canada has a broader list of targets that could reach C$150 billion ($103 billion) worth of U.S. imports, but would hold public consultations before acting, the source said.
Mexican President Claudia Sheinbaum has also threatened retaliation, but said she would “wait with a cool head” for Trump’s tariff decision and was prepared to continue a border dialogue with him.
A spokesperson for Beijing’s embassy in Washington said China “firmly opposes” Trump’s new duties, adding, “There is no winner in a trade war or tariff war, which serves the interests of neither side nor the world.”
