Donald Trump’s administration strongly refuted a report that U.S.-imposed tariffs would begin in March, confirming that the President has decided to go ahead with the move starting Feb. 1.
White House Press Secretary Karoline Leavitt announced that the U.S. will hit Canada and Mexico with 25 per cent tariffs, and China with 10 per cent tariffs as of Saturday.
In its exclusive, Reuters stated that “the tariff situation remained fluid on Friday, and no decision is final until [Donald] Trump makes a public announcement.”
“The sources, who asked not to be named because they are not authorized to speak publicly on the matter, said they did not have details on a final tariff rate but noted Trump has consistently said that he plans to impose a 25 per cent tariff on imports from the two countries on Saturday,” Reuters shared.
The news agency also shared that an administration official stated that U.S. President Donald Trump was “reviewing tariff plans.” While it could include exemptions, those would be “few and far between,” the official said.
“I saw that report, and it is false,” Leavitt stated.
“I was just with the President in the Oval Office, and I can confirm that tomorrow, the February 1 deadline that President Trump put into place in a statement several weeks ago, continues.
“The President will be implementing tomorrow 25 per cent tariffs on Mexico, 25 per cent tariffs on Canada … They have sourced and allowed to distribute, which has killed tens of millions of Americans. These are promises made and kept by the President,” Leavitt affirmed.
Leavitt explained that she did not have an update on possible exemptions, but “those tariffs will be for public consumption is about 24 hours, tomorrow. So, you can read them then.”
Speaking to reporters on Thursday, Trump revealed that the tariffs could be handed down this weekend.
“It depends on what the price is. If the oil is properly priced, if they treat us properly — which they don’t,” the President said.
According to the Energy Information Administration, the United States imported almost 4.6 million barrels of oil daily from Canada in October and 563,000 barrels from Mexico. U.S. daily production during that month averaged nearly 13.5 million barrels a day.
The potential impact on Canadian business
Trump initially claimed his 25 per cent tariff threat was in response to what he called the failure by Canada and Mexico to curb the illegal flow of people and drugs across the border.
Ontario Premier Doug Ford has already vowed to counterpunch by pulling American alcohol off store shelves. Canada is the world’s No. 2 market for America’s distilled spirits (behind the 27-nation European Union).
Trump’s tariffs threaten to blow up the trade agreement he negotiated with America’s neighbours in his first term. His U.S.-Mexico-Canada Agreement – “the fairest, most balanced, and beneficial trade agreement we have ever signed into law,” Trump once declared — was supposed to bring predictability to North American trade, giving businesses the confidence to make investments.
