Mexico, Canada and China provide $1.6 trillion in annual business to the US and accounted for 40% of the goods imported into America in 2024
The White House announced yesterday that President Donald Trump’s proposed tariffs on goods imports from Mexico, China and Canada are expected to take effect today.
Under the new policy, the US will impose a 25% tariff on goods from Mexico and Canada and a 10% duty on Chinese imports.
The White House further denied speculation that the president will delay the implementation by a month.
Press Secretary Karoline Leavitt confirmed the tariffs are in retaliation for “the illegal fentanyl that they have sourced and allowed to distribute into our country.”
The three countries provide $1.6 trillion in annual business to the US and accounted for 40% of the goods imported into America in 2024.
- Canada brings in 60% of US oil imports, while Mexico is the country’s largest supplier of fruits, vegetables, beer and electronics.
- Mexico and Canada accounted for nearly 50% of US auto imports in 2023.
- Trump recently indicated he would cut Canada oil import tariffs to 10% rather than the suggested 25%.
- US imports from China have flattened since 2018 due to escalating trade wars and geopolitical tensions like Beijing’s support for Russia and North Korea.
While it is unclear what industries will be affected by the tariffs, American businesses and people are bracing for price surges since importers pass on the cost hikes to consumers.
Economists warn such tariffs may reignite inflation. The Trump administration is expected to elaborate and share more details on the tariffs today.