President Donald Trump has confirmed the imposition of 25% tariffs on imports from Mexico and Canada, set to take effect on Saturday, February 1. This development comes as a follow-through on threats issued weeks earlier by the president, aimed at addressing multiple concerns, including drug trafficking and economic imbalances. The announcement was made Thursday evening as Trump spoke to reporters, emphasizing the urgency and seriousness of the matter.
The primary motivations behind these tariffs include the flow of drugs such as fentanyl into the United States and the substantial trade deficits with both neighboring countries. Trump cited these reasons while discussing the rationale for the new duties, highlighting their significance in his administration's broader economic and security agenda.
"Number one is the people that have poured into our country so horribly and so much," Trump stated, referring to immigration issues.
"Number two is the drugs fentanyl and everything else that have come into the country, and number three are the massive subsidies that we're giving to Canada and Mexico in the form of deficits."
While the decision on oil imports remains uncertain, Trump indicated that it would depend on how Mexico and Canada respond to the tariffs. He suggested that whether oil is included in the policy would be determined by how "properly" the two nations treat the United States and whether their oil is "properly priced."
"We're going to make that determination probably tonight on oil. Because they send us oil, we'll see – it depends on what their price is," he said.
Despite the uncertainty surrounding oil imports, Trump made it clear that oil was not a primary focus of this tariff imposition.
"Oil is going to have nothing to do with it as far as I'm concerned."
The tariffs reflect Trump's longstanding threats against Canada and Mexico, aiming to recalibrate trade relations perceived as unfavorable to the United States. As of 8:06 a.m. London time, March contracts for Brent crude, which serves as a global benchmark for oil prices, traded marginally higher at approximately $76.92 a barrel.