President Donald Trump will impose a 25% tariff on imports from Canada and Mexico and a 10% tariff on Chinese products starting Saturday, the White House announced on Friday. However, it was not specified whether any exemptions would be granted, a measure that could lead to immediate price increases for American consumers.
Trump, a Republican, had threatened to implement these tariffs to pressure countries into cooperating in reducing unauthorized immigration and the trafficking of chemicals used in fentanyl production. Additionally, he has reiterated his commitment to using tariffs as a tool to boost domestic manufacturing.
“Starting tomorrow, these tariffs will take effect,” White House Press Secretary Karoline Leavitt told reporters. “These are promises made and promises kept by the president.”
Trump had mentioned the possibility of exempting oil imports from Canada and Mexico from tariffs, but Leavitt stated she had no information on whether the president would make that decision.
In October, the United States imported nearly 4.6 million barrels of oil per day from Canada and 563,000 barrels from Mexico, according to the Energy Information Administration. During the same month, U.S. daily production averaged approximately 13.5 million barrels per day.
Trump also indicated that the 10% tariff on Chinese imports would be in addition to other taxes already imposed on products from that country.
Meanwhile, a report from the Department of Commerce, released on Friday, revealed that consumer prices rose 2.6% in December compared to the previous year, surpassing the 2.4% increase recorded in November. This marks the third consecutive rise. Excluding the volatile categories of food and energy, core prices increased by 2.8% year-over-year, remaining at the same level as in November and October.
Despite this, Wednesday’s report showed some positive signs. In the short term, inflation appears to be slowing down: in December, core prices rose by only 0.2% from the previous month, a figure close to the Federal Reserve’s annual target. Economists and Fed officials closely monitor core prices, as they provide a better outlook on inflation trends.
