Trump says tariffs on Canada and Mexico coming Saturday, and he’s deciding whether to tax their oil
Associated Press5 days
Trump Says 25% Tariffs on Canada, Mexico Coming Saturday
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Above: Donald Trump waves to reporters on the South Lawn of the White House on Jan. 27, 2025. Image copyright: Chip Somodevilla/Staff/Getty Images News via Getty Images
The Facts
US Pres. Donald Trump has announced plans to impose 25% tariffs on imports from Canada and Mexico starting Feb. 1, while leaving the possibility of oil import exemptions under consideration.
Speaking to reporters at the White House on Thursday, he alleged the two countries have treated the US "very unfairly on trade," adding, "We don't need the products they have."
Additionally, he cited concerns about undocumented migration at the border, fentanyl trafficking, and "very big deficits" with Canada and Mexico as reasons behind his decision.
The Spin
Narrative A
The tariffs are necessary to protect American interests and force neighboring countries to address border security concerns. The US doesn't need Canadian and Mexican products, has sufficient domestic oil production, and can quickly make up for any decline in imports. Additionally, Trump's decision could be a way for Washington to gain an upper hand ahead of new negotiations on a regional trade agreement.
Narrative B
The proposed tariffs would severely disrupt decades of economic integration, raise consumer prices, and trigger a devastating trade war that would harm all three economies. With Canada and Mexico pledging to respond with retaliatory tariffs, Trump's decision could particularly damage critical supply chains in the automotive, agriculture, and energy sectors while failing to address the stated border security concerns.
