President Donald Trump has ordered tariffs on Mexico, Canada, and China starting Saturday, but the country’s North American neighbors will be taxed at a significantly higher rate than its East Asian rival.
Goods coming from Canada and Mexico will be slapped with a 25 percent tariff, while those from China will be taxed at just 10 percent, the White House announced.
Talk of tariffs has lingered since before Trump was sworn in. His press secretary, Karoline Leavitt, told reporters Friday those oft-discussed rumors—which many experts believe will increase costs for Americans—will become reality this weekend.
“The president will be implementing tomorrow a 25 percent tariff on Mexico, 25 percent tariff on Canada, and a 10 percent tariff on China for the illegal fentanyl they have sourced and allowed to distribute into our country,” she said.
The press secretary added that fentanyl has “killed tens of millions of Americans,” an exaggeration of actual figures. In reality, fentanyl killed approximately 73,000 Americans in 2022 and and 75,000 in 2023.
Leavitt said a recent Reuters report—that claimed the Trump tariffs would not begin until March—was “false.” Instead, she said Trump would make good on one of his premier campaign promises ASAP.
While Trump is likely ecstatic his beloved tariffs will be in place soon, U.S. markets did not react so fondly. The Dow plummeted 200 points—about .5 percent—immediately after Leavitt made the lunchtime announcement.
Leavitt did not specify any exemptions to the tariffs. When asked about exempting oil, she said the public will be able to read what the tariffs entail starting Friday.
The spokesperson was pressed about potential negative impacts of tariffs, like increasing the cost of consumer goods stateside. She told those concerned to look at Trump’s first White House term.
“Think Americans who are concerned about increased prices should look at what President Trump did in his first term,” she said. “He effectively implemented tariffs, and the average inflation rate during the first Trump administration was 1.9 percent.”
Leavitt also took aim at Canadian Prime Minister Justin Trudeau, who indicated this week he would push back against any tariffs implemented against his nation. She said the leader “would be wise to talk to President Trump directly before pushing outlandish comments like that to the media.”
Mexico has promised to push back against tariffs, too, but Leavitt made no additional mention of the southern U.S. neighbor on Friday.
A CNBC report noted the U.S. does about $1.6 trillion in annual business between the Canada, Mexico, and China—and that Trump is using such sharp tariffs as “bargaining chips” and “to affect foreign policy changes” like immigration and drug trade issues.
