Donald Trump has confirmed that he will impose a 25% tariff on imports from Mexico and Canada starting February 1, making good on a threat he made weeks ago.
The sweeping tariffs on products from both countries will take effect on Saturday, February 1.
However, speaking to reporters in the Oval Office on Thursday night, Trump said his administration has not yet decided whether oil imports will be included in the policy, with the decision depending on the actions of the two countries.
“Oil will have nothing to do with this at this point,” he said. The March contract for Brent crude, the global benchmark for oil prices, was up slightly at 8:06 a.m. London time, trading around $76.92 a barrel.
Trump told reporters that the tariffs were being imposed “for a number of reasons” and “may increase over time.”
“The number one reason is the people who have been coming into our country uncontrollably,” he said. “The second reason is the drugs like fentanyl and others that have been brought into this country, and the third reason is the massive subsidies that we give to Canada and Mexico in the form of deficits.”
“I will impose a 25% tariff on Canada and separately a 25% tariff on Mexico, and we have to do it because we have a very large deficit with those countries,” he added.
Representatives from the Mexican and Canadian governments have not commented, although both countries have previously promised to respond to the tariffs with their own measures.
“If there are tariffs from the US, Mexico will also raise tariffs,” President Claudia Sheinbaum said at a press conference last week, according to Reuters, adding that the move would cause prices to rise for American consumers.
However, there are also concerns that the tariffs will affect consumers in Canada and Mexico. Earlier this week, for example, policymakers at the Bank of Canada warned that such measures by the US could lead to prolonged inflation in the country.
