Trump’s 25% Tariffs on Canada and Mexico Set for Saturday—Oil Could Be Next

 

President Donald Trump has confirmed that starting Saturday, the U.S. will impose a 25% tariff on all imports from Canada and Mexico, escalating tensions with two of America’s largest trading partners. The move, according to Trump, is aimed at reducing illegal migration, stopping fentanyl trafficking, and addressing what he calls unfair trade practices.

 

However, there is still a possibility that Canada and Mexico could avoid the tariffs—if they act quickly. Trump’s Commerce Secretary nominee, Howard Lutnick, revealed that the tariffs could be waived if both countries take immediate and aggressive action to stop fentanyl from crossing their borders into the U.S.

 

Trump Justifies Tariffs: “They Don’t Treat Us Fairly”

Speaking from the Oval Office, Trump defended his decision, stating that the U.S. has been at a trade disadvantage for years.

 

“Look, Mexico and Canada have never been good to us on trade,” Trump said. “They’ve treated us very unfairly, and we will be able to make that up very quickly because we don’t need the products that they have.”

 

Trump also left the door open for additional tariffs on oil imports, with a final decision expected Thursday night.

 

“We may or may not [impose tariffs on oil]. We’re going to make that determination probably tonight,” Trump said. “If the oil is properly priced, if they treat us properly—which they don’t—we’ll see.”

 

 

A Last-Minute Reprieve? Lutnick Says Canada and Mexico Can Avoid Tariffs

During his Senate confirmation hearing, Trump’s nominee for Commerce Secretary, Howard Lutnick, suggested that Canada and Mexico still have a chance to avoid the trade penalties.

“If they execute it, there will be no tariff,” Lutnick stated, referring to a crackdown on fentanyl at the border.

Canadian Foreign Minister Melanie Joly, currently in Washington for negotiations, acknowledged Lutnick’s comments as a “positive” signal but warned that Canada is prepared to retaliate if necessary.

 

Economic Fallout: Prices on Food, Cars, and Gas Could Rise

If the tariffs go into effect, economic experts warn they could drive up the cost of imported goods such as food, cars, and other essential products. Canada and Mexico have already hinted at retaliatory tariffs, increasing the risk of a trade war that could further disrupt supply chains.

Should Trump include oil in the tariff list, gas prices in the U.S. could spike, contradicting his earlier promises to lower energy costs.

 

China Also in the Crosshairs

Beyond North America, Trump is also targeting China with new tariff threats, citing the country’s role in fentanyl production and allegations of intellectual property theft in artificial intelligence and semiconductor technology. Lutnick vowed to enforce stricter controls on China’s access to U.S. technology, further escalating trade tensions between Washington and Beijing.

 

What Happens Next?

With Saturday’s deadline fast approaching, Canada and Mexico must decide whether to make concessions or retaliate. Trump’s decision on oil tariffs is expected tonight, and the possibility of a full-blown trade war looms large.

If Trump follows through, Americans could soon feel the impact at the grocery store, the car dealership, and the gas pump.