WASHINGTON – US President Donald Trump on Saturday will implement tariffs of 25 per cent on Canadian and Mexican imports and ten per cent on Chinese goods with immediate effect, White House spokesperson Karoline Leavitt said on Friday.
“The President will be implementing tomorrow 25 per cent tariffs on Mexico, 25 per cent tariffs on Canada, and a ten per cent tariff on China for the illegal fentanyl that they have sourced and allowed to distribute into our country, which has killed tens of millions of Americans,” Leavitt told a White House Press briefing.
Reuters earlier quoted sources familiar with the tariff deliberations as saying that Trump would announce tariffs on Canadian and Mexican imports on Saturday but delay collection of the duties until March 1 and offer a limited process for certain imports to be exempted.
Leavitt called the report “false,” but when asked about exemptions, she said she did not have an “update or readout for you on the exemptions.” She added that the duties would be published on Saturday and would take effect immediately.
Leavitt’s comments sent the dollar higher, particularly against the Mexican peso and Canadian dollar, both of which had rallied earlier following the Reuters report. Treasury bond yields also rose, while stocks reversed course to move lower on the day.
When Trump imposed punitive duties on Chinese good in 2018 and 2019, there was typically a lag of two to three weeks for Customs and Border Protection to begin collecting tariffs, due to notices required for importers.
The sources, who asked not to be named because they are not authorised to speak publicly on the matter, had told Reuters they they did not have details on a final tariff rate, but noted Trump has consistently said that he plans to impose a 25 per cent tariff on imports from the two countries on Saturday.
Separately, an administration official said Trump on Friday was reviewing tariff plans, which may allow for some exemptions. Still, any exemptions would be “few and far between,” the official said.
While the announcement of tariffs may roil financial markets and strain the US relationship with its top two trading partners, offering a 28-day window before implementation and possible exemptions would suggest a more careful approach by the Trump administration.
It also would buy time for negotiations over actions by Canada and Mexico to meet Trump’s stated goals for the duties to pressure the two US neighbours to halt the flow of illegal immigrants and deadly fentanyl opioids across the US border. (Reuters)
