U.S. President Donald Trump on Sunday told reporters that he planned to announce new 25% tariffs on Monday, targeting imports of steel and aluminum.
The proposed levies would be in addition to existing duties and no timeline for implementation was specified.
The two metals are vital components in various industries, including transportation, construction, and packaging.
Here’s a look at the biggest potential winners and losers if Trump goes ahead with his 25% steel and aluminum tariffs.
The United States
Perhaps unsurprisingly, the biggest winner of the trade tariffs is likely to be the U.S.
U.S. steel imports have declined substantially over the past decade, official data shows, falling 35% between 2014 and 2024 — despite a 2.5% annual uptick to 26.2 million metric tons last year. Many attribute this to tariffs introduced under President Trump’s first administration.
America’s aluminum imports, however, have risen 14% over the past decade, with U.S. exports of the metal rising progressively since 2020.
On Monday, James Campbell, analyst at commodity pricing consultancy CRU, told CNBC that he expected the potential tariffs to have varying effects on the U.S. over time.
“At the start, this could damage demand,” he said. “In the longer term, we can see investment coming through.”
Since Trump’s first wave of tariffs in 2018, CRU’s Campbell said the U.S. had seen investment rise in both the steel and aluminum sectors.
During his first presidency, Trump slapped tariffs on steel and aluminum imports from Canada, Mexico and the EU. His administration also placed volume limits on imports from various other nations, including South Korea, Argentina and Australia.
A later report from the Congressional Research Service found that in the first five months of the policy, the Trump administration collected more than $1.4 billion in revenue.
Canada and Mexico
The two countries are among the biggest exporters of steel and aluminum to the United States, so are likely to be hurt by the tariffs if they come into effect — even after being granted temporary respite from blanket duties on all their exports into America.
Germany
Germany is also a big steel exporter to the U.S. and is likely to be negatively affected by the tariffs.
However, Thyssenkrupp, one of Europe’s largest steelmakers, told CNBC Monday it expects “very limited impact” on its business if the U.S. levies additional tariffs on steel and aluminum.
The German company said Europe remains its primary market for steel with only “high-quality” niche products exported to the U.S. where it maintains a “good market position”.
“The majority of thyssenkrupp’s sales in the U.S. come from the trading business and the automotive supply business,” a spokesperson said via email. “In principle, Thyssenkrupp is well positioned in these businesses in the US with a significant share of local manufacturing for the local market. Much of the production for U.S. customers takes place within the U.S..”
Asian exporters
South Korea, Vietnam and Japan are also among the countries likely to see their metals hit with new import tariffs if Trump goes ahead with the policy.
Imports from Vietnam grew by more than 140% from the previous year, according to CNBC’s analysis of U.S. trade data. Taiwan also exported 75% more steel to the U.S. in 2024 compared to the previous year.
This developing story is being updated.
Global Winners and Losers of Trump’s Steel and Aluminum Tariffs
President Trump’s decision to impose tariffs on steel and aluminum imports has sparked a global debate on the potential winners and losers of this controversial move. While the tariffs are aimed at boosting domestic production and protecting American jobs, they have also raised concerns about a possible trade war and its impact on the global economy.
So who are the winners and losers in this scenario?
Winners:
1. U.S. Steel and Aluminum Industries: The most obvious winners of the tariffs are the U.S. steel and aluminum industries, which stand to benefit from increased demand for domestic products.
2. Domestic Producers in Countries Exempted from Tariffs: Countries like Canada, Mexico, and Australia, which have been exempted from the tariffs, may see increased demand for their steel and aluminum products in the U.S. market.
3. Recyclers and Secondary Producers: With the increased cost of imported steel and aluminum, recyclers and secondary producers may find it more cost-effective to use scrap materials to produce new products.
Losers:
1. U.S. Businesses Dependent on Imported Steel and Aluminum: Industries that rely heavily on imported steel and aluminum, such as automakers and construction companies, may face higher production costs and reduced competitiveness in the global market.
2. Consumers: Higher prices for steel and aluminum products could lead to increased costs for consumers, affecting a wide range of industries from automobiles to canned goods.
3. Global Trade Relations: The tariffs have already sparked concerns about a potential trade war, with countries like China and the EU threatening retaliation. This could lead to higher tariffs on U.S. exports and disrupt global trade relations.
In conclusion, while the tariffs may benefit certain domestic industries, they also have the potential to harm U.S. businesses and consumers, as well as disrupt global trade relations. The long-term impacts of this move remain uncertain, but it is clear that the global economy is likely to see both winners and losers as a result of Trump’s steel and aluminum tariffs.
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President Donald Trump will pause additional tariffs on Canadian imports for 30 days after a call with Prime Minister Justin Trudeau, who made some concessions to temporarily stave off the levies.
Trump and Trudeau spoke via phone on Monday, hours before additional 25% tariffs were to take effect on Canadian goods coming into the United States. In a post on X, Trudeau said Canada will implement a $1.3 billion border plan and appoint a fentanyl czar.
In addition, Canada will reinforce its border with new helicopters, technology, personnel and enhanced coordination with American authorities. He added that nearly 10,000 personnel are and will be working on border protection.
President Donald Trump talks with Canadian Prime Minister Justin Trudeau during the plenary session of the NATO summit at the Grove Hotel in Watford, northeast of London, on Dec. 4, 2019.(Nicholas Kamm)
“We will list cartels as terrorists, ensure 24/7 eyes on the border, launch a Canada-U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering,” Trudeau wrote. “I have also signed a new intelligence directive on organized crime and fentanyl and we will be backing it with $200 million.”
“Proposed tariffs will be paused for at least 30 days while we work together,” he added.
Trump has long said Canada and Mexico have failed to do enough to prevent the flow of illegal migrants and drugs, particularly fentanyl, from those nations into the U.S. In addition, Trump claims the U.S. has subsidized Canada to the tune of $200 billion annually.
These bags of fentanyl were seized in Nogales, Ariz., in October 2022.(CBP)
“We need to protect Americans, and it is my duty as President to ensure the safety of all,” Trump wrote in a statement on Saturday, when he imposed the tariffs. “I made a promise on my Campaign to stop the flood of illegal aliens and drugs from pouring across our Borders, and Americans overwhelmingly voted in favor of it.”
Hours before his call with Trudeau, Mexican President Claudia Sheinbaum said she would deploy 10,000 troops to the U.S.-Mexico border over tariff threats.
Trump has promised to impose a 25% tariff on all Canadian and Mexican goods, as well as a 10% tariff on Canadian energy and a 10% tariff on all goods entering the U.S. from China. The tariffs on Canada and China were set to go into effect Tuesday at midnight.
Trucks drive across the Blue Water Bridge at the border crossing between the U.S. and Point Edward in Ontario, Canada, on Feb. 3, 2025.(Geoff Robins/AFP via Getty Images)
Threats prompted leaders in multiple Canadian provinces to pledge to remove American alcohol from store shelves.
In a positive turn of events, President Trump has agreed to pause imposing tariffs on Canadian aluminum, Canadian Prime Minister Justin Trudeau announced today. This decision comes after weeks of negotiations between the two countries, with Trudeau expressing relief that the tariffs will not be implemented for the time being. Stay tuned for further updates on this developing situation. #tariffs #Canada #Trump #Trudeau
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President Donald Trump announced Monday that proposed U.S. tariffs on Canadian goods have been paused for 30 days, citing efforts by Canadian leaders to secure the border.
The announcement followed an afternoon call between Trump and Canadian Prime Minister Justin Trudeau. Trump had threatened 25% tariffs on all Canadian goods beginning this week unless the country did more to stop the flow of unauthorized migrants and fentanyl into the U.S.
Trudeau said in a statement that Canada is spending $1.3 billion on “reinforcing the border.” Roughly 10,000 “frontline personnel are and will be” working on border protection, the country is appointing a “Fentanyl Czar” and will designate drug cartels as terrorists, Trudeau said. He added that Canada would spend $200 million on a new intelligence program targeted at organized crime and fentanyl.
On the platform he owns, Truth Social, Trump said he was very pleased with the deal, noting “As President, it is my responsibility to ensure the safety of ALL Americans, and I am doing just that.”
Trump also paused proposed 25% tariffs on Mexico Monday after reaching a deal with Mexican President Claudia Scheinbaum Pardo for more border enforcement.
The announcements averted an immediate trade war between the U.S. and two of its closest allies that had spooked investors. The S&P 500 stock index dropped in early trading Monday but recovered some of its losses after the Mexico deal was announced.
In a recent diplomatic development, President Donald Trump has decided to pause tariffs on Canada after speaking with Prime Minister Justin Trudeau. This decision comes after weeks of tensions between the two countries over trade issues.
During the phone call, Trump and Trudeau reportedly discussed the importance of maintaining a strong economic relationship between the United States and Canada. The two leaders also discussed the ongoing negotiations over the USMCA trade deal, which aims to modernize the North American Free Trade Agreement.
The decision to pause tariffs on Canada is seen as a positive step towards resolving the trade disputes between the two countries. It is hoped that this move will help to de-escalate tensions and pave the way for more fruitful negotiations in the future.
Overall, this development is a welcome one for both countries and demonstrates the importance of open communication and diplomacy in resolving international disputes. It remains to be seen what the future holds for US-Canada trade relations, but for now, it seems that tensions have eased thanks to this important conversation between Trump and Trudeau.
U.S. Rep. Jason Crow toured the base in Aurora, Colorado, Monday where officials told him that the facility will be used as a base of operations for federal immigration enforcement agencies but not as a detention center for immigrants in the U.S. illegally.
“I showed up today, started poking around like I like to do, and did discover that indeed the facility is being used for Homeland Security operations, for ICE operations,” said Crow, a Democrat, as he stood in front of the base and its sweep of dry, windblown grass.
Last week, Department of Defense officials said the base would be used to process immigrants, prompting concern from elected leaders. Crow’s visit to the base Monday didn’t turn up any signs that migrants would be housed there, such as cots, he said.
During the presidential campaign, Trump claimed that Aurora was overrun by a criminal gang from Venezuela and used the rhetoric to drive home his plan for mass deportation. Aurora officials said Trump’s statements were overblown.
In a surprising turn of events, President Trump has announced that he will be pausing the tariffs on steel and aluminum imports from Canada and Mexico. This decision comes after months of tense negotiations and threats of economic retaliation.
Additionally, in a separate development, the headquarters of the United States Agency for International Development (USAID) has been sealed off. The reasons for this sudden closure are unclear, but it has raised concerns among employees and the international development community.
Stay tuned for more updates on these breaking news stories. #Trump #Tariffs #USAID #LiveUpdates
Prime Minister Justin Trudeau says U.S. tariffs on Canada will be paused “for at least 30 days” after agreeing on border security measures with U.S. President Donald Trump on Monday afternoon.
The call, the second held between the two leaders Monday, came just hours before 25 per cent tariffs on Canadian goods were set to take effect Tuesday, along with 10 per cent tariffs on energy exports to the U.S.
He said Canada is implementing the $1.3-billion border security plan first unveiled in December, which includes “reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl.”
Trudeau said nearly 10,000 frontline personnel “are and will be working on protecting the border.”
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Canada will also appoint a “fentanyl czar,” list drug cartels as terrorist organizations, “ensure 24/7 eyes on the border,” and launch a new Canada-U.S. joint strike force to combat fentanyl, organized crime and money laundering, the prime minister added.
“I have also signed a new intelligence directive on organized crime and fentanyl and we will be backing it with $200 million,” he wrote.
“Proposed tariffs will be paused for at least 30 days while we work together.”
But it also includes several border security measures the federal government has already committed to, and that Canadian officials have spent weeks detailing to Trump administration officials and U.S. lawmakers in Washington.
“I am very pleased with this initial outcome, and the Tariffs announced on Saturday will be paused for a 30 day period to see whether or not a final Economic deal with Canada can be structured,” Trump wrote in a social media post.
Trump pauses Mexico tariffs for one month
The news came after a day when all eyes were on the two leaders as Canada braced for news on the impending tariffs.
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Asked in the Oval Office after the deal with Mexico was announced if there was anything Canada can do to get its own reprieve, Trump said “I don’t know,” but then turned to his frequently mentioned push to acquire Canada.
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“I’d like to see Canada become our 51st state,” he told reporters.
“We give them protection, military protection. We don’t need them to build our cars. … We don’t need them for lumber, we don’t need them for anything. We don’t need them for energy.”
Trump has linked his coming trade war with Canada to fentanyl crossing the border into the U.S., a position backed up by members of his administration and several Republican lawmakers in Congress.
“This is a drug war, not a trade war,” Trump’s trade advisor Peter Navarro told reporters outside the White House after the deal with Mexico was announced, which Navarro said Canada should match.
Yet on Monday, Trump raised a new grievance about Canada not allowing U.S. banks into the country.
Several smaller U.S. banks operate branches in Canada, but regulations ensure the largest banks, commonly referred to as the “Big Five,” are Canadian-owned to ensure financial independence and regulatory stability.
Canada prepares retaliation as Trump tariffs spark trade war
Trump said he raised the banking issue with Trudeau in their morning call and suggested that was something he wanted to see addressed in any trade deal, and tied it to what he said is the larger issue of countries not treating the U.S. fairly.
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“All we want is a fair deal,” he said, adding he wants “reciprocal” tariffs on trading partners that charge their own duties on American imports.
“Many of the countries that you feel so horrible about, the way they’re being treated by Trump — you’re saying, ‘Oh, President Trump is so terrible to them’ — well they charge us tariffs.
“A lot of these countries, they’re so-called allies, but they don’t treat us well,” he continued.
Ottawa was set to impose 25 per cent tariffs on $30 billion in goods originating in the U.S., hitting hundreds of items, from meat and milk to carpets and curtains.
Canada’s initial tariff response was set to take effect Tuesday, when the American tariffs are being applied, with additional rounds of responses to follow.
Provinces and territories were also set to retaliate, including by cancelling U.S. business contracts and pulling American products from liquor store shelves.
Premiers began announcing those measures were being put on hold after Trudeau’s announcement, but warned they would return if Trump decides to proceed with tariffs.
“Make no mistake, Canada and Ontario continue to stare down the threat of tariffs,” Ontario Premier Doug Ford, who is currently running for re-election, said in a statement.
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“So long as our trading relationship with our largest trading partner is up in the air, we will continue to see many potential projects frozen and projects that were already underway put at risk.”
Trump tariffs: Doug Ford bans contracts with U.S. companies like Starlink
Trump has waved away concerns about tariffs raising prices for American consumers or affecting the stock market, as well as the potential impacts of the Canadian response.
He said the issue of tariffs would go away entirely if Canada becomes a U.S. state.
“I’d love to see that, but some people say that would be a longshot,” he admitted Monday.
“If people wanted to play the game right, it would be 100 per cent certain that they become a state, but a lot of people don’t like to play the game because they don’t have a threshold for pain. And there would be some pain, but not a lot, and it would mostly be theirs.”
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Economists have said Canada could enter a recession in a wide scale trade war, leading to lost jobs and business investment, while the U.S. will see a rise in inflation — something Trump promised to bring down during his presidential campaign.
Recently, there has been a significant development in the ongoing trade dispute between the United States and Canada. President Trump has announced that he will be “pausing” his proposed tariffs on Canadian goods for a period of 30 days, following commitments made by Canada to increase border security measures.
This decision comes as a relief to many businesses and consumers on both sides of the border, who have been concerned about the potential impact of these tariffs on the economy. The tariffs, which were set to go into effect in the coming weeks, would have imposed additional costs on a wide range of Canadian goods, from aluminum and steel to lumber and dairy products.
However, with this temporary pause in place, there is hope that the two countries will be able to come to a mutually beneficial agreement that addresses the underlying issues without resorting to punitive measures. Both sides have expressed a willingness to continue negotiations in good faith, and this development is seen as a positive step towards resolving the trade dispute.
It remains to be seen what will happen after the 30-day period is up, but for now, businesses and consumers can breathe a sigh of relief knowing that the immediate threat of tariffs has been averted. Stay tuned for further updates on this developing story.
Chrystia Freeland, Canada’s former finance minister, excoriated Trump’s tariffs in an interview on MSNBC’s “Morning Joe” today, blasting them in part as “so unjustified and so pointless.”
“These tariffs are being imposed truly for utterly no reason,” Freeland said. “The pretext offered is the flimsiest pretext possible.”
The White House has said it slapped a 25% tariff on Canadian goods to pressure the country into blunting the flow of fentanyl and immigrants into the U.S.
Freeland pushed back on that premise, saying that less than 1% of the fentanyl that comes into the U.S. moves across the northern border.
In fact, according to the White House’s fact sheet on tariffs, 43 pounds of fentanyl were seized at the northern border last fiscal year. In contrast, more than 21,000 pounds of fentanyl were seized at the southern border with Mexico during the same period, according to the administration.
“If border security were the issue, this could be solved in five minutes,” said Freeland, a member of Canadian Parliament who served as the country’s finance minister from August 2020 through December 2024.
Freeland, who is running to succeed outgoing Canadian Prime Minister Justin Trudeau, said Canadians were rallying against the Trump administration’s tariffs program. In response to the president’s repeated comments that Canada should become the 51st state, she said “our sovereignty is not negotiable.”
“If you hit us, we are going to hit back, and the whole country is going to be proud to do that,” she said.
President Trump is set to discuss tariffs with officials from Canada and Mexico as tensions rise over trade policies. The meeting comes as the U.S. looks to renegotiate NAFTA and implement tariffs on steel and aluminum imports.
In a surprise move, Elon Musk announced that his company, SpaceX, will be shutting down its USAID program. Musk cited concerns over government regulations and bureaucracy as reasons for the decision. The move has sparked controversy and debate over the future of government-funded space exploration.
Stay tuned for updates on these developing stories. #Trump #tariffs #Canada #Mexico #Musk #USAID #SpaceX #trade
President Donald Trump’s proposed tariffs against Canada and Mexico were both paused Monday after his decision to impose sweeping tariffs on Mexico, Canada and China initially led to retaliation from Canadian leaders and rattled global markets.
President Donald Trump speaks to reporters next to Air Force One after arriving back at Joint Base … [+] Andrews, Md., on Feb. 2.
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Timeline
Feb. 3, 1:57 p.m. ESTTrump announced the tariffs against Canada will be paused for 30 days, saying the longtime U.S. ally will implement a $1.3 billion border reinforcement plan that will bolster the U.S.-Canada border with “new choppers, technology and personnel… and increased resources to stop the flow of fentanyl.”
Feb. 3, 1:57 p.m. ESTCanadian Prime Minister Justin Trudeau announced the border reinforcement plan and tariff pause in a tweet, noting the launch of a “Canada- U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering,” the second of which Trump has used as a justification for sweeping tariffs (government reports contradict Trump’s claims that the flow of fentanyl coming to the U.S. through Canada is “massive,” according to The New York Times).
Feb. 3, 3:00 p.m. ESTChina’s ambassador to the United Nations Fu Cong said China will file a lawsuit with the World Trade Organization against Trump’s tariffs, The New York Times reports, adding the country believes the move violates WTO policies and China “may be forced to take countermeasures” against Trump’s taxes on its imports.
Feb. 3, 1 p.m. ESTTrump toldreporters in the Oval Office his 10% tariffs against China are an “opening salvo” and could still go up further and reiterated that the tariffs against Canada and China will still take effect Tuesday though Mexico’s taxes are paused, alsosaying the U.S. isn’t “treated well” by Canada and he “[doesn’t] know” what the northern country could do to keep the tariffs from taking effect.
Feb. 3, 10:41 a.m. ESTTrump said on Truth Social he had a “very friendly conversation” with Sheinbaum in which she “immediately” agreed to send 10,000 Mexican soldiers to the border, and confirmed they will pause the tariffs on the country’s imports for one month while his administration negotiates with Mexican officials.
Feb. 3, 10:21 a.m. ESTSheinbaum said the U.S. is pausing tariffs for a month in an announcement on X, also saying the country’s National Guard will station 10,000 members on the U.S.-Mexico border to protect against drug trafficking.
Feb. 3, 10 a.m. ESTU.S. stocks slumped Monday morning as the market responded to Trump’s tariffs, with alcoholic beverage companies, cryptocurrency-focused companies, automakers and multinational tech companies like Apple and Nvidia taking the biggest hits.
Feb. 3, 9:09 a.m. ESTTrump said on Truth Social he spoke with Trudeau and will speak with him again this afternoon—and continued to slam the country, claiming it’s responsible for a “DRUG WAR” and saying about Canadian leaders declining to do business with the U.S. because of tariffs, “What’s that all about?”
Feb. 3, 8 a.m. ESTOntario Premier Doug Ford said the province, which includes Toronto, will ban all U.S. companies from receiving government contracts with the province, saying those companies “only have President Trump to blame”—and canceled the province’s contract with Elon Musk-led satellite internet company Starlink, writing, “Ontario won’t do business with people hellbent on destroying our economy.”
Feb. 3, 6:50 a.m. ESTWith a threat of tariffs on European imports to the U.S. looming, markets in the continent were also hit with by a selloff with the Euro STOXX 50 Index sliding 1.6% while the London Stock Exchange’s FTSE 100 Index fell 1.2%
Feb. 3, 6:30 a.m ESTThe U.S. Dollar Index—which measures the U.S. currency against a basket of six other major currencies—rose to a two-year high of 109.45 on Monday morning, up nearly 1%.
Feb. 3, 6:15 a.m. ESTThe cryptocurrency market also appears to have been rattled by the fears of a trade war with Bitcoin’s price dropping more than 3.6% in the past 24 hours to $95,509.
Ether, which is the world’s second most valuable crypto token by market cap, was hit even harder as it price has crashed more than 15% in the previous 24 hours to around $2610.
The president’s own meme crypto token $TRUMP (Official Trump) also took a hit, as its price slid more than 13.5% in the previous 24 hours to $17.80. Unlike other major crypto tokens, however, $TRUMP has been on a downward slide since its explosive launch and had shed more than 30% of its value just in the last week.
Feb. 3, 6 a.m. ESTThe U.S. stock futures slumped early on Monday as global markets braced for the fallout of President Donald Trump’s decision to impose sweeping tariffs on imports from Canada, Mexico and China.
As of early Monday morning Dow Futures was down to 44,113, falling 1.3%, while the tech centric NASDAQ Futures saw an even sharper slump of 1.6% to 21,227. S&P 500 Futures were also hit by the selloff, dropping 1.4% to 5,980.
Feb 3, 5 a.m. ESTMajor Asian stock indices were also hit by a selloff amid trade war concerns with Japan’s Nikkei 225 index falling 2.66%, Australia’s S&P/ASX 200 dropping 1.79%, South Korea’s KOSPI index down 2.52% and India’s BSE Sensex down 0.41%.
In China, the Shanghai Stock Exchange’s Composite Index closed relatively flat, only 0.06% in the red, while the Shenzhen-based SZSE Component Index—which focusses on tech companies and small cap private enterprises—took a bigger hit and dropped 1.33%.
Feb. 2, 2:53 p.m. ESTMexican President Claudia Sheinbaum issued a video message on X announcing the country will come out with more details Monday morning on its countermeasures against the U.S. tariffs, saying the country will “act with a cool head and love for the people” and arguing Trump’s claims the Mexican government is allied with criminal drug groups is “terribly irresponsible,” according to translations by Bloomberg and The New York Times.
Feb. 2, 2 p.m. ESTTrump’s border czar Tom Homan told the Times in an interview that Canada has “taken steps” to address Trump’s concerns about immigration and drug trafficking, “but they haven’t taken enough steps,” adding that while Canada is “improving” its border security, Trump “doesn’t feel like they’ve done enough, and that’ll be his call.”
Feb. 2, 1 p.m. ESTThe Canadian government unveiled the full list of U.S. imports that the country will levy 25% tariffs on as part of its retaliatory measures against the U.S., which will apply to $30 billion worth of goods to start out with, including numerous food items, plastics, rubber, luggage, lumber, clothing, business supplies, glassware, appliances, furniture, cosmetics and more.
Feb. 2, 10:30 a.m. ESTHomeland Security Secretary Kristi Noem acknowledged on “Meet the Press” that Trump’s tariffs could raise prices but said the blame would fall on other countries for not following Trump’s demands, rather than the president, encouraging other countries to “get on board and to make sure that they’re not pushing up prices” and claiming “if prices go up, it’s because of other people’s reactions to America’s laws.”
Feb. 2, 9 a.m. ESTCanadian Ambassador Kristen Hillman told ABC News Canadians are “perplexed” and “confused” by Trump’s tariffs on the nation’s imports and argued it’s “hard to know what more we can do” to prevent the tariffs since the Canadian government has already been “leaning in hard” to appease Trump—but noted Canada does not intend to back down from its plan for retaliatory tariffs, as Canadians “are going to expect that our government stands firm and stands up for itself.”
Feb. 2, 8:30 a.m. ESTDoug Ford, the premier of Canada’s Ontario province, said on X the region’s sole liquor wholesaler will remove American alcohol from its catalogs so that stores and restaurants in Ontario cannot stock any U.S. liquors—it follows similar moves from Nova Scotia Premier Tim Houston and British Columbia Premier David Eby, who banned his province’s Liquor Distribution Branch from buying American alcohol from “red states.”
Feb. 2, 8:09 a.m. ESTThe president defended his decision, writing on Truth Social, “WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!). BUT WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID.”
Feb. 1Canada and Mexico both levied retaliatory tariffs on U.S. imports in response to Trump’s directive, while China said it would file a lawsuit with the World Trade Organization and take “countermeasures” in response to the move.
Feb. 1Trump imposed 25% tariffs on imported goods from Canada and Mexico—other than energy from Canada, which will be taxed at 10%—and an additional 10% tariff on goods from China, which he claimed was to hold the countries “accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country.”
Crucial Quote
“MAKE YOUR PRODUCT IN THE USA AND THERE ARE NO TARIFFS!” Trump said on Truth Social in defense of his tariffs. “WE ARE A COUNTRY THAT IS NOW BEING RUN WITH COMMON SENSE — AND THE RESULTS WILL BE SPECTACULAR!!!”
When Will Trump’s Tariffs Take Effect?
Trump’s tariff order will take effect Tuesday for duties that are levied on imported goods, except for any imports that were already in transit before Trump ordered the tariffs Saturday. Hillman told ABC News on Sunday the country is “hopeful” the tariffs will not take effect and the country’s government is “ready to continue to talk to the Trump administration about that,” though it’s unclear that Trump will negotiate at all on his plans.
What Impact Will Trump’s Tariffs Have On Prices And The Economy?
Trump’s tariffs on Canada, Mexico and China would effectively could cost each U.S. household more than $830 in additional taxes in 2025, according to an analysis released by the center-right Tax Foundation. The organization also predicted Trump’s plan would reduce the U.S.’ economic output by 0.4% and increase taxes in the U.S. overall by $1.2 trillion between 2025 and 2034. Economists have long warned Trump’s tariff plan would raise prices for American consumers—as the import taxes are paid by the U.S. companies that import foreign goods, which then pass on those costs to the consumer by raising prices—and a May analysis by the nonpartisan think tank Peterson Institute for International Economics (PIIE) concluded Trump imposing broad tariffs on imported goods would “[inflict] significant collateral damage on the US economy.” Goldman Sachs economists led by Ronnie Walker previously projected in April that prices on consumer goods would go up by 0.1% for every percentage increase in the effective tariff rate and raise inflation. In addition to imported goods, economists have predicted the price of domestic goods will also go up, as U.S. companies will “opportunistically” raise prices to take advantage of having less competition from imported products.
Will Trump Impose More Tariffs?
Trump has suggested he wants to impose universal tariffs on other countries’ goods, though it’s still unclear when that could happen or what any broader tariffs could look like. “I have it in my mind what it’s going to be but I won’t be setting it yet, but it’ll be enough to protect our country,” Trump said Monday about his plan to impose tariffs on all imported goods. The president told reporters Friday he plans on “doing something substantial” in terms of taxing European imports specifically, saying, “Am I going to impose tariffs on the European Union? Do you want the truthful answer or should I give you a political answer? Absolutely, absolutely.”
How Has The Business Community Responded To Trump’s Tariffs?
Business and manufacturing groups have criticized Trump’s tariffs, with U.S. Chamber of Commerce vice president John Murphy saying the move “is unprecedented, won’t solve these problems, and will only raise prices for American families and upend supply chains.” National Association of Manufacturers CEO Jay Timmons said the “ripple effects” of the tariffs “will be severe,” particularly for smaller manufacturers, warning, “Ultimately, manufacturers will bear the brunt of these tariffs, undermining our ability to sell our products at a competitive price and putting American jobs at risk.” Leaders of major companies have previously suggested Trump’s tariffs will lead to higher prices for American consumers, with Walmart chief financial officer John David Rainey telling CNBC in November the import taxes mean “there probably will be cases where prices will go up for consumers.” Best Buy CEO Corie Barry acknowledged on the company’s earnings call in November that most of its goods are imported from China and Mexico and any tariffs would likely result in higher prices, saying, “These are goods that people need, and higher prices are not helpful.”
How Has The Chinese State Media Reacted To Trump’s Tariffs?
In China, the state-run tabloid Global Times, criticized the move in an editorial, saying “trade coercion” will not fix the U.S.’s “fentanyl crisis.” The op-ed notes that the Trump administration’s actions “violates WTO rules and disciplines” and result in countermeasures that “could lead to a global trade war.” The Chinese foreign ministry also expressed opposition to the move and said it would take “necessary countermeasures to defend its legitimate rights and interests.” The ministry said the tariffs cannot “solve the U.S.’ problems at home” and will not benefit either side.
How Has The Canadian Media Reacted To Trump’s Tariffs?
The Toronto Star published a guide for people who want to buy Canadian during the trade war, which included a list of grocery and other essential products sold by Canadian companies. The newspaper’s editorial titled: “We didn’t want this trade war. But now we must fight,” urged Canadians to “band together despite our differences” and grasp that “no one has ever won by appeasing a bully.” The Globe and Mail’s editorial page said that the trade war would reshape North America and warned, “There will be no way to satisfy all his demands. He will keep using them in a predatory manner…There will be no way to satisfy all his demands. He will keep using them in a predatory manner.” The Toronto Sun’s editorial acknowledged Canada will not be able to win an “all-out trade war” with the U.S. but added: “Still, when the bully hits you, you hit back.” The editorial called for retaliation targeting products that “Americans will notice” but “will have the least impact on Canadian consumers.”
How Much Fentanyl Comes From Canada And Mexico?
Trump has used the flow of fentanyl as one of his primary justifications for tariffs against Canada and Mexico, despite the U.S.’ northern ally not playing a large role in fentanyl smuggling when compared to Mexico. Trudeau has said fentanyl smuggling from Canada contributes to a fraction of a percent of the illegal fentanyl in the U.S., while U.S. Drug Enforcement Administration data has found only about 43 pounds of fentanyl was seized at the northern border in 2024. That same year, about 21,100 pounds of fentanyl were seized at the southern border.
Key Background
Trump has long vowed to impose tariffs on imported goods, even as economists and business leaders have decried the move. The president previously levied higher tariffs on Chinese imports during his first term, which sparked a trade war with China before the two sides reached a trade agreement in December 2019. While Trump long promised on the campaign trail to levy tariffs on imported goods, he only proposed 25% tariffs on Mexican and Canadian goods in November, which marked an escalation over the 10% to 20% he proposed pre-election. The president’s order Sunday comes after Trump said on his first day in office that he planned to impose the tariffs Feb 1, and imposed the broad tariffs with few restrictions despite earlier reports suggesting his administration was considering exempting certain imports or delaying the tariffs until March.
Tangent
In his Truth Social posts Sunday, Trump also reiterated his desire for Canada to become the “51st state,” claiming the country wouldn’t be “viable” if it weren’t for U.S. subsidies. Making it a U.S. state would mean “much lower taxes, and far better military protection for the people of Canada — AND NO TARIFFS!” Trump claimed. Canadian officials have strongly decried any suggestion the country should become part of the U.S., with Immigration Minister Marc Miller saying the suggestion is “beneath a president of the United States” and Minister of Intergovernmental Affairs Dominic LeBlanc saying the comments are “a way for [Trump], I think, to sow confusion, to agitate people, to create chaos knowing this will never happen.”
Good news! The proposed tariffs on imports from Canada and Mexico have been paused. This decision comes after negotiations between the countries to address trade issues and avoid a potential trade war.
The tariffs, which were set to go into effect in the coming weeks, would have increased the cost of goods imported from Canada and Mexico, leading to higher prices for consumers and potential retaliation from the affected countries.
This pause in tariffs is a positive step towards maintaining strong trade relationships with our neighbors and avoiding unnecessary economic strain. It is important for all parties involved to continue working towards fair and mutually beneficial trade agreements in the future.
Stay tuned for further updates on this developing situation. Let’s hope for continued progress and cooperation between Canada, Mexico, and the United States. #TradeRelations #Tariffs #Canada #Mexico
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Canada and Mexico tariffs, trade agreements, North American trade, international relations, economic impact, proposed tariffs, global trade, tariffs negotiation
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In a recent announcement, Canadian Prime Minister Justin Trudeau revealed that US President Donald Trump has agreed to pause tariffs on Canada for a period of 30 days. This comes as a welcome relief for both countries, as tensions have been running high over trade disputes in recent months.
Trudeau stated that the temporary halt in tariffs will allow for further negotiations between the two nations to find a resolution to the ongoing trade disagreements. This move is seen as a positive step towards de-escalating the trade war between the US and Canada, and signals a willingness on both sides to work towards a mutually beneficial solution.
While the exact details of the negotiations have not been disclosed, Trudeau expressed optimism that progress can be made during this 30-day period. Both countries are hoping to reach a compromise that will benefit their economies and strengthen their trade relationship.
Overall, Trudeau’s announcement of the temporary pause in tariffs on Canada is a promising development in the ongoing trade tensions between the US and its northern neighbor. It remains to be seen what will come out of the negotiations in the next 30 days, but for now, both sides are hopeful for a positive outcome.
What impact will this have on the flow of migrants?published at 19:30 Greenwich Mean Time
19:30 GMT
Bernd Debusmann Jr Reporting from the White House
Media caption,
Watch: Mexico’s president announces border agreement with Trump
As part of today’s agreement to “pause” the tariffs on Mexico, the Mexican government had promised to deploy 10,000 National Guard troops to the northern border, in part, to stop the flow of undocumented migrants to the US border.
While different in scale, this is not the first time that Mexico has cracked down on migrants headed to the US.
Last year – during the Biden administration – Mexico deployed some forces to its southern border with Guatemala and in southern Mexican cities that have become hubs for migrants, which led to a significant increase in the number of migrants intercepted before they arrived at the US border.
In January and February last year alone, about 120,000 people were detained. The vast majority remained in Mexico, with only limited deportations of about 8,000 people to Guatemala and Honduras in the same time frame.
In practice, the crackdown – which followed a December meeting between US Secretary of State Antony Blinken and Mexican officials including López Obrador – has seen Mexican security forces set up new checkpoints on roads, increase patrols and, in some cases, remove migrants from freight trains headed towards the US border.
In a recent development, President Trump has announced a 30-day pause on tariffs imposed on Canada. This decision comes after discussions between Trump and Canadian Prime Minister Justin Trudeau. Stay tuned for live updates on this significant development in international trade relations. #Trump #Canada #tariffs #Trudeau #liveupdates
The Current19:59Canada will prevail against Trump tariffs: finance minister
Federal Finance Minister Dominic LeBlanc says things could get “very tough” under sweeping U.S. tariffs, but it will help Canada’s case when that pain is felt on both sides of the border.
“I’m convinced in the end [Canada’s argument] will prevail, because it’s in the American economic interest to not sort of get into this rabbit hole,” LeBlanc told The Current’s Matt Galloway.
“But now that we’re in it … we’ve got to go through it and we’ve got to do it in a way that supports Canadian businesses and the Canadian workers.”
Trump also placed 25 per cent tariffs on Mexico, and 10 per cent tariffs on China. But on Monday Trump delayed tariffs on Mexico by a month, after Mexican President Claudia Sheinbaum agreed to deploy 10,000 Mexican national guard troops to the U.S. border.
WATCH | Trudeau responds to U.S. tariffs:
Trudeau on U.S. tariffs: ‘We didn’t ask for this, but we will not back down’
After announcing Canada’s response to U.S. tariffs, Prime Minister Justin Trudeau said the coming days will be ‘difficult for Canadians, and they’ll be difficult for Americans.’ Trudeau said Canada will levy a 25 per cent tariff on $155 billion worth of U.S. goods in response to U.S. President Donald Trump’s 25 per cent tariffs on most Canadian goods.
Prime Minister Justin Trudeau spoke with Trump Monday morning. They are expected to speak again at 3 p.m. ET. LeBlanc spoke to Galloway before that initial call, to discuss what the federal government is doing to win this fight and support Canadians.
The Bank of Montreal says Trump’s tariffs hammer will come down hard on the Canadian economy. How bad is this going to be?
I think it’s going to be very tough. Provincial governments and the Department of Finance have looked at various scenarios. What we don’t yet know is how quickly Canadian businesses will be able to respond.
I’m talking to you from Moncton, New Brunswick this morning. People are fishing lobster in the Bay of Fundy now, and 70 or 80 per cent of that catch gets sent to Boston. So you can see the price will go up by 25 per cent tomorrow. So big and small sectors of our economy are going to be hit.
Our government, of course, responded with some counter tariff measures that we can escalate over time. We’re convinced that in the end, the Americans will conclude that it’s not in their economic interest to continue this kind of back and forth.
WATCH | Canada hits back after Trump imposes 25% tariffs:
Canada hits back after Trump imposes 25% tariffs
The federal government announced retaliatory 25 per cent tariffs on U.S. goods — ranging from juice to appliances and cars — after President Donald Trump followed through on his tariff threats. The trade war has people being urged to buy Canadian as the scope of the economic fallout waits to be seen.
There has been endless kind of shuttle diplomacy back and forth…. Why [do] you think the efforts of Canada failed to persuade [Trump] to change his mind?
I’ve asked myself that question, Matt, and I think my colleagues have as well, because you’re right, we made a considerable effort. Premiers made a very considerable effort to speak directly to Americans [and] American leaders. We think we have a good story to tell on border security, on the increased work that the RCMP and CBSA [Canada Border Services Agency] have done in recent weeks with their American partners.
There’s no daylight between Canada and the United States in wanting to fight that kind of criminal activity [around fentanyl] or the horrible effects it has in Canadian and American communities. So you’re right, if that was the pretext for these tariffs, we think that that argument should be rationally resolved. So then therefore, one asks the question, well, why did they go ahead with this decision on the weekend?
The focus for us, Matt, has to be, “OK, they’ve done it.” What do we need to do to respond to get Canada out from under this circumstance as quickly as possible and as we go through it? What do we need to do with provinces and territories and other partners to support Canadian businesses? So we’re really going to focus on that.
Is there any wiggle room, do you think, to avoid these tariffs coming into place tomorrow?
He said that himself, which … is a bit contradictory from the idea that if we could show them and work with them to tell the good story about border security … they would be reassured and these tariffs wouldn’t happen. So there’s a lot of contradiction in much of what is said publicly. But we can spend a lot of time being distracted by that.
WATCH | Trump says ‘nothing’ Canada can do to stop tariffs tomorrow:
Trump says ‘nothing’ Canada can do to stop tariffs
U.S. President Donald Trump says there’s nothing Canada can do to stop 25% tariffs as Ottawa prepares to retaliate with a ‘forceful but reasonable’ economic response.
The prime minister will make the case to the president this morning why this is putting at risk decades of economic and security partnership and will hurt Canadian and American businesses in a way that’s totally unnecessary.
We’ll continue to make that argument. I’m convinced in the end it will prevail because it’s in the American economic interest to not sort of get into this rabbit hole. But now that we’re in it … we’ve got to go through it and we’ve got to do it in a way that supports Canadian businesses and the Canadian workers.
There are people who are very, very anxious about what the next few days will hold…. What is your government going to do to help support Canadians who could be out of work, perhaps even temporarily, by the end of this week?
There are existing federal programs, Matt. Employment insurance is obviously one of them. We can adjust some of the criteria, some of the access to benefits. There’s changes we can make around work sharing to allow more workers to remain employed to share, in other words, the economic risk with the businesses.
All of those programs are being looked at, like, literally on the weekend and today. We have the ability to immediately put in a number of flexibilities in existing programs. I can, as the finance minister, ensure that there’s liquidity in the economy, that businesses have access to the money they need to continue to operate.
WATCH | Canadians sound off on Trump’s trade war:
Canadians sound off on Trump’s trade war
We asked Canadians: How concerned are you about Donald Trump’s tariffs on Canadian goods?
What about for people who worry about their rent? I mean, will there be direct supports to people who worry that if they’re not working, they can’t keep the lights on in their house?
There are programs that exist now to support those workers. And if we need to have different programs that meet a particular need, we will. So we’ll do what is necessary to ensure, to your exact question, that these workers are not through no fault of their own in an untenable economic position.
The good news is a lot of those programs exist now. And if we have to have different ones in partnership with provinces that will very much want to step up, then we absolutely will do that as well.
What do you make of how Canadians are responding, not just booing anthems, but … in terms of talking about cancelling vacations to the states, looking at Buy Canadian policies? What do you make of how we as Canadians have responded to this?
It’s quite touching, to be honest. It’s quite moving to see how people who aren’t policymakers or business leaders or representatives of large groups of workers in their own daily routines and in their own decisions as consumers are wanting symbolically and substantively to do something to support the common cause.
Everybody’s trying in their small way to say to the Americans: You know what? Decades of friendship and partnership economically and from a security perspective can’t be thrown out because a particular president decides for a reason that’s not particularly clear … to do this to the Canadian and American economy.
Canada will prevail against Trump’s tariffs but ‘we’ve got to go through it’: finance minister
In the face of escalating trade tensions with the United States, Canada’s finance minister remains optimistic about the country’s ability to weather the storm.
Speaking to reporters, the finance minister acknowledged the challenges posed by President Trump’s tariffs on Canadian steel and aluminum, but expressed confidence in Canada’s resilience. “We’ve been through tough times before and we will prevail against these tariffs,” he said.
However, he also emphasized the need for Canadians to brace themselves for a bumpy road ahead. “We’ve got to go through it,” he added, alluding to the potential economic impacts of the trade dispute.
Despite the uncertainty surrounding the future of Canada-US trade relations, the finance minister urged Canadians to remain steadfast. “We will come out stronger on the other side,” he said. “We’ve got to stay united and stay strong in the face of these challenges.”
As Canada prepares to navigate the choppy waters of international trade, it seems clear that the country is determined to stand firm against protectionist policies and safeguard its economic interests.
