News
US Tariffs to Hit Canada Tomorrow, Alberta Oil Gets Carve-Out
(VOR NEWS)—In breaking news today, President Donald Trump announced on Friday that he would impose 25% tariffs on goods from Canada and Mexico and 10% on imports from China, with no way to avoid them.
President Trump did, however, mention a potential carve-out for oil from Alberta, Canada, saying that the rate would be 10% rather than the 25% planned for other goods from the United States’ northern neighbor.
However, he stated that wider tariffs on Alberta oil and natural gas would be implemented in mid-February, sending oil prices higher.
President Trump has been threatening tariffs for weeks, claiming they will go into effect on February 1 and remain in place until Prime Minister Trudeau does more to stem the flow of migrants and fentanyl across the US-Mexico border.
Speaking to reporters in the Oval Office as he signed executive orders, President Trump acknowledged that the duties could result in higher costs being passed on to consumers and that his actions may cause short-term disruptions.
According to Reuters, most economists believe that such broad import taxes, along with the likely retaliation, would disrupt global economic activity.
When asked if there was any chance at this point for the three top US trading partners to win a delay, President Trump replied, “No, no.” “Not now, no.” He dismissed the notion that his threats of levies were a bargaining tool.
“No, it’s not … we have big (trade) deficits with, as you know, with all three of them.”
“It’s something we’re doing, and we’ll possibly very substantially increase it, or not, we’ll see how it is,” Trump said at the time. “But it’s a lot of money coming to the United States.”
EU Facing New Tariffs
More tariffs are on the way, according to the Republican president, who stated that import taxes are being considered on European goods, steel, aluminium, and copper, as well as drugs and semiconductors.
“We’re going to impose tariffs on steel, aluminium, and eventually copper. “Copper will take a little longer,” he explained.
The rapid-fire but still unclear developments on Trump’s tariff plans have sent financial markets into a tailspin, with currency trading particularly volatile. The Canadian dollar and Mexican peso both fell, while Treasury bond yields increased, and stocks finished the day lower.
Nonetheless, he expressed no concern about how the financial markets would react to his tariff plans.
“The President will impose 25% tariffs on Canada, 25% tariffs on Mexico, and a 10% tariff on China for the illegal fentanyl that they have sourced and allowed to be distributed into our country, which has killed tens of millions of Americans,” White House spokesperson Karoline Leavitt said during a press briefing.
Leavitt stated that details about the tariffs would be released on Saturday.
Duties on Chinese Goods
When President Trump imposed punitive duties on Chinese goods in 2018 and 2019, Customs and Border Protection typically took two to three weeks to begin collecting tariffs due to computer system updates and notices required by importers.
President Trump arrived at his Mar-a-Lago estate in Florida late Friday, saying he planned to work all weekend. His commerce secretary nominee Howard Lutnick, whom Trump has appointed as his trade policy chief, accompanied him on the flight.
In world news headlines, Economists and business executives have warned that the tariffs will raise the prices of Canadian imports such as aluminium and lumber, as well as Mexican fruits, vegetables, beer, and electronics, and both countries’ automobiles.
President Trump once again mentioned collecting hundreds of billions of dollars in revenue from other countries, but economists generally believe tariffs are paid by businesses that import goods and pass the costs on to consumers or accept lower profits.
“President Trump’s tariffs will tax America first,” said Matthew Holmes, public policy chief for the Canadian Chamber of Commerce. “From higher costs at the pumps, grocery stores and online checkout, tariffs cascade through the economy and end up hurting consumers and businesses on both sides of the border.”
Canada to Respond Immediately
President Trump’s move is expected to spark retaliatory tariffs, potentially disrupting more than $2.1 trillion in annual two-way trade between the United States and its three trading partners.
Meanwhile, outgoing Canadian Prime Minister Justin Trudeau said on Friday that Canada would respond immediately with strong countermeasures, adding that Canadians may face “difficult times in the coming days and weeks.”
Canada has developed specific targets for immediate tariff retaliation, including duties on Florida orange juice, according to a source familiar with the plan. According to the source, Canada has a broader list of targets that could total C$150 billion ($105 billion) in US imports, but it will hold public consultations before taking action.
Mexican President Claudia Sheinbaum said she would “wait with a cool head” for Trump’s tariff decision and was willing to continue border talks.
Sheinbaum previously stated that Mexico would retaliate, claiming that Trump’s tariffs would cost 400,000 US jobs and raise prices for US consumers. China has been more cautious about its retaliation plans but has promised to respond.
China “firmly opposes” Trump’s new duties, according to a spokesperson for Beijing’s embassy in Washington, adding that “there is no winner in a trade or tariff war, which serves the interests of neither side nor the world.”
