Trump to hit Canada, Mexico and China with tariffs on Saturday

US President Donald Trump is set to impose tariffs on goods imported from Canada, Mexico, and China starting this Saturday. According to the White House, the tariffs will be 25% on products from Canada and Mexico, while products from China will face a 10% tariff. Interestingly, Trump mentioned that Canadian oil might be subject to a lower tariff of 10%, which could take effect on February 18. Additionally, Trump indicated plans to impose tariffs on the European Union in the future, expressing dissatisfaction with how the bloc has treated the US. White House press secretary Karoline Leavitt explained that the tariffs on Canada and Mexico are a response to the illegal fentanyl that has been sourced from these countries, which has resulted in the deaths of tens of millions of Americans. Trump has also emphasized that these tariffs are intended to address the significant number of undocumented migrants crossing US borders and to rectify trade deficits with neighboring countries. Leavitt stated during a news briefing, 'These are promises made and promises kept by the President. ' During his election campaign, Trump had threatened to impose tariffs of up to 60% on Chinese-made products, but he decided to hold off on immediate action on his first day back in the White House, instead instructing his administration to study the issue further. Since 2018, imports of goods from China have remained stagnant, a trend that economists attribute in part to the series of escalating tariffs that Trump implemented during his first term. Earlier this month, a high-ranking Chinese official cautioned against protectionism as Trump's return to the presidency reignites the potential for a trade war between the two largest economies in the world, although he did not specifically mention the US. Speaking at the World Economic Forum in Davos, Switzerland, Ding Xuexiang, Vice Premier of China, stated that his country is seeking a 'win-win' solution to trade tensions and aims to increase its imports. Canada, Mexico, and China are the top three trading partners of the US, accounting for 40% of the goods imported into the US last year. Concerns are growing that the new steep tariffs could trigger a significant trade war and lead to rising prices in the US. Canadian Prime Minister Justin Trudeau remarked, 'It's not what we want, but if he moves forward, we will also act. ' Both Canada and Mexico have already indicated that they will respond to US tariffs with their own measures while also assuring Washington that they are taking steps to address concerns regarding their borders. The BBC has reached out to the Chinese embassy in the US for their comments on the situation. If the US imposes tariffs on oil imports from Canada and Mexico, it could undermine Trump's promise to lower the cost of living. Tariffs are essentially taxes on goods produced in other countries. The idea behind imposing these taxes is that it makes imported items more expensive, which should encourage consumers to buy cheaper local products instead, thereby boosting the domestic economy. However, the costs associated with tariffs on imported energy could be passed on to businesses and consumers, potentially increasing prices for everything from gasoline to groceries. Approximately 40% of the crude oil processed in US refineries is imported, with the majority coming from Canada. On Friday, Trump acknowledged that tariff costs are sometimes passed on to consumers and admitted that his plans might cause short-term disruptions. Mark Carney, the former head of the central banks of Canada and England, shared his thoughts on BBC Newsnight, stating that the tariffs will negatively impact economic growth and lead to higher inflation. He warned, 'They're going to damage the US's reputation around the world. ' Carney is also a contender to replace Trudeau as the leader of Canada's Liberal Party.