"The U.S. will impose tariffs on computer chips, pharmaceuticals, steel, aluminum, copper, oil and gas imports as soon as mid-February, President Trump said Friday, opening a new front in his looming second-term trade wars.
"That'll happen fairly soon," Trump told reporters in the Oval Office, adding that he also wants to hike tariffs on the European Union, which has "treated us so horribly," though he didn't specify when the duties would be imposed or how high they would be.
A representative for the EU didn't respond to a request for comment.
The announcement for those sector-based and EU tariffs appeared separate from the 25% tariffs on Canada and Mexico, and 10% tariffs on China, which he had said would be implemented Saturday.
The duties previewed by Trump would come on top of existing tariffs on those products, he said, waving away any concern about the levies increasing inflation or snarling global supply chains.
"I think there could be some temporary, short-term disruption and people will understand that," Trump said. "The tariffs are going to make us very rich and very strong."
In the short term, leaders in Mexico, Canada and China -- and CEOs of American companies -- were hyperfocused on whether the president would include carve-outs for major industries that have lobbied him hard in recent days. His team has been in negotiations over how to potentially dial back the tariffs on those countries from the across-the-board version the president has pledged, but officials have warned that Trump may still decide to go through with a full-throated approach.
Trump has said the Mexico and Canada tariffs will take effect if the countries don't take steps to stop migration and drug trafficking over U.S. borders. Trump had promised to take a combative position with China over its role in the fentanyl crisis.
White House press secretary Karoline Leavitt on Friday said the Mexico, Canada and China tariffs were coming but declined to speak on exemptions for certain products or what -- if anything -- the trading partners could do to avoid the duties. Trump's team had also been considering a grace period between the announcement of the tariffs on Saturday and when they would actually be imposed, but Leavitt seemed to play down that possibility on Friday, telling reporters Trump would "implement his tariffs tomorrow."
Stocks pared morning gains and turned negative after her remarks.
Trump told reporters in the Oval Office that there was nothing Canada, Mexico and China could do to avoid the tariffs before Saturday. But he did say he was considering a lower tariff on Canadian crude oil -- 10% instead of 25%.
The decision on carve-outs for the first round of duties expected Saturday would provide an early indicator on the level of economic risk the president is willing to take in sparking new trade wars and pushing other nations to adhere to his policy demands. For weeks, large U.S. industries such as the oil and automotive sectors have lobbied him for exemptions from the tariffs, warning of higher prices and continental-wide supply chain issues, while Canada and Mexico have prepared a list of retaliatory measures to hit U.S. products with tariffs in kind.
Trump advisers have considered exemptions for oil imports and automobiles that comply with the U.S.-Mexico-Canada Agreement, the updated Nafta deal that Trump negotiated and signed in his first term.
Trump on Thursday gave some indication that exemptions could be coming, saying that he would consider a carve-out for oil, but reiterating that the tariffs would be imposed on Saturday, despite extensive talks with Canada and Mexico this week. His administration has insisted that none of the duties would add to inflation.
The China tariff threat, meanwhile, has flown under the radar compared with the North American tariff pledges. While Trump said earlier this past week that he was still considering duties on the world's second-largest economy, he has rhetorically targeted Canada and Mexico much more often, and his team had appeared to have less contact with Chinese diplomats than officials from the U.S.'s continental neighbors.
Depending on carve-outs, this round of Trump tariffs could cover more trade in dollar value than his first-term duties. Trump's four tranches of tariffs on Chinese goods in 2018-19 covered imports valued at roughly $360 billion at the time. New tariffs on Canada and Mexico plus additional tariffs on China would -- if all items are subject to the action -- cover imports valued at more than $1.3 trillion in 2023.
Canada and Mexico combined supplied about 28% of U.S. imports in the first 11 months of 2024, according to Census Bureau data. China accounted for an additional 13.5%.
U.S. Customs and Border Protection reported that last fiscal year 21,148 pounds of fentanyl was seized at the southwest border, the vast majority from U.S. citizens coming through legal ports of entry. On the northern border, CBP reported seizing 43 pounds of the drug.
Officials from both U.S. neighbors mounted a concerted campaign this past week to avoid the tariffs, opening new migration and drug working groups with the administration while also preparing retaliatory measures to hit U.S. products with tariffs.
Throughout the process, Mexican and Canadian officials have expressed frustration that they don't know what actions would satisfy Trump's demands, despite weeks of meetings between senior officials. Indeed, the looming tariff announcement Saturday would follow the White House saying publicly this past week that negotiations were progressing well with both nations.
On Friday morning, Canadian Prime Minister Justin Trudeau reiterated that Canada would have a "forceful but reasonable" response to U.S. tariffs. He warned that the Canadian economy could suffer. "I won't sugar coat it," he said.
Canada's central bank warned this past week that trade conflict with the U.S. would throw the Canadian economy into turmoil. Friday, Canada's public safety minister, who is in charge of the border, as well as its immigration and foreign ministers were all in Washington for last-minute meetings with Tom Homan, Trump's border czar.
Mexican President Claudia Sheinbaum, meanwhile, said her government was ready for Trump's tariffs and would respond in kind.
"We have Plan A, Plan B, Plan C for whatever the U.S. government decides," Sheinbaum said. "It's important to remember the implications that imposing tariffs could have for the U.S. economy."" [1]
Oh Sheinbaum, oh Sheinbaum, how green is your stupid thinking...
The EU is sitting still with saliva running and waiting for Ukraine's Zelensky to destroy Russia and get their hands on the riches of Moscow.
1. President Threatens To Widen Trade War --- Trump plans sector- based levies on eve of expected Mexico- Canada-China duties. Bade, Gavin; Andrews, Natalie; Vipal Monga in Toronto; Santiago Perez in Mexico City. Wall Street Journal, Eastern edition; New York, N.Y.. 01 Feb 2025: A1.
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