Energy products from Canada will have only a 10 per cent duty, but Mexican energy imports will be charged the full 25 per cent, officials told reporters on Saturday.
A White House fact sheet says the duties will come into effect on Tuesday and remain in place "until the crisis alleviated," but it did not provide details on what actions the three countries would need to take to win a reprieve.
The moves follow through on a repeated threat Trump has made since shortly after winning November's election, and they likely will trigger retaliation and risk igniting a trade war that could cause broad economic disruption for all countries involved.
The three countries are the top US trade partners, sparking fears that the duties will lead to higher prices.
Canadian Prime Minister Justin Trudeau, who has previously threatened strong retaliation if Trump imposed tariffs, responded quickly.
"We did not want this, but Canada is prepared. I'll be addressing Canadians later this evening," he posted on X.
The United States has confirmed that it intends to impose 25% tariffs on most Canadian goods, with 10% tariffs on energy, starting February 4.— Justin Trudeau (@JustinTrudeau) I've met with the Premiers and our Cabinet today, and I'll be speaking with President Sheinbaum of Mexico shortly.We did…February 2, 2025
Provincial officials and business executives in Canada reacted with outrage, calling for forceful tariffs on imports from the US.
A senior Mexican official said Mexico would respond with retaliatory tariffs.
Trump has declared the national emergency under the International Emergency Economic Powers Act and the National Emergencies Act to back the tariffs, which allow the president sweeping powers to impose sanctions to address crises.
White House officials said there would be no exclusions from the tariffs and if Canada, Mexico or China retaliated against American exports, Trump would likely increase the US duties.
Ontario Premier Doug Ford said in an X social media post that Canada "now has no choice but to hit back and hit back hard".
President Trump's decision to tariff Canada is extremely disappointing and will hurt millions of workers on both sides of the border. We don't want to be here, but make no mistake: Canada will hit back and we'll hit back hard. — Doug Ford (@fordnation) pic.twitter.com/BcqMR4yfq3February 2, 2025
"As Premier of Ontario, the federal government has my full support for a strong and forceful response that matches US tariffs dollar for dollar," Ford said.
A senior Mexican official told Reuters that Mexico would respond with retaliatory tariffs later on Saturday.
The White House officials said that Canada specifically, would no longer be allowed the "de minimis" US duty exemption for small shipments under $US800 ($A1283).
The officials said Canada, along with Mexico, has become a conduit for shipments of fentanyl and its precursor chemicals, into the US, via small packages that are not often inspected by customs agents.
Trump, who golfed at his Mar-a-Lago estate in Florida on Saturday before signing the order, was not scheduled to speak to reporters about the tariffs.
Less than two weeks into his second term, Trump is upending the norms of how the United States is governed and interacts with its neighbours and wider world.
On Friday he acknowledged the tariffs could cause disruption and hardship for American households.
A model gauging the economic impact of Trump's tariff plan from EY Chief Economist Greg Daco suggests it would reduce US growth by 1.5 percentage points this year, throw Canada and Mexico into recession and usher in "stagflation" at home.
with reuters
