Trump still expected to impose Feb. 1 tariffs on Canada and Mexico

WASHINGTON — US President Donald Trump still plans to make good on his promise to issue tariffs on Canada and Mexico on Saturday, White House spokeswoman Karoline Leavitt said on Tuesday.

Ms. Leavitt told reporters in her first White House press briefing that Mr. Trump also is still “very much” considering fresh tariffs on China for Saturday.

Shortly after taking office last week, Mr. Trump set a Feb. 1 deadline for imposing 25% tariffs on imports from Mexico and Canada unless the countries move to halt flows of illegal immigrants and the deadly opioid fentanyl into the US. He also said he would slap a 10% tariff on Chinese goods over that country’s role in the fentanyl trade.

Asked about the Saturday deadline for Canada and Mexico, Ms. Leavitt said Trump has said it “still holds.”

“The president has also put out specific statements in terms of Canada and Mexico, when it comes to what he expects in terms of border security.” Ms. Leavitt added. “We have seen a historic level of cooperation from Mexico. But again, as far as I’m still tracking, and that was last night talking to the president directly, Feb. 1 is still on the books.”

She did not specify what actions Canada, Mexico and China needed to take to avert the tariffs. Trump, who first threatened the punitive duties in late November, has said that the tariffs would remain in place until the flows of migrants and drugs stop.

On Sunday, Trump forced Colombia to accept US deportations of illegal immigrants, including via military aircraft, after threatening Latin America’s fourth largest economy with 25% tariffs. For about 10 hours, Colombian President Gustavo Petro’s refusal to accept military aircraft loaded with deported Colombian nationals and threats to match Trump’s tariffs had the two free trade partners reeling toward an unexpected tariff war.

FAR BIGGER STAKES
The stakes are far higher in Trump’s tariff threats against Mexico, Canada and China, the three largest US trading partners accounting for over $2.1 trillion in annual imports and exports.

Colombia was the US’ 23^rd largest trading partner in 2023, accounting for $33.8 billion worth of two-way trade, and a $1.6-billion US trade surplus, according to US Census Bureau data. Colombia’s economy is highly dependent on exports to the US, which made up 29% of its total exports for the first 11 months of 2024, according to the country’s statistics agency.

Disrupting trade flows within the highly integrated North American economy would be very costly, said Mary Lovely, a trade economist at the Peterson Institute for International Economics.

Among the biggest impacts would be the auto industry, where parts and components can cross national borders several times before a vehicle’s final assembly in the US, Canada or Mexico.

“That’s kind of a sobering fact that lays in the direction of doing something that either pushes this can down the road or which finds a way to resolve this,” Ms. Lovely said.

She added that Canada and Mexico “have to be thinking the US has a lot to lose here, too. They’re not Colombia.”

Howard Lutnick, Trump’s nominee for Commerce secretary who has been designated leader of trade strategy, faces senators on Wednesday for a confirmation hearing. His prepared remarks revealed no new details about Trump’s trade plans. — Reuters