Trade Cases

Trump to place 25% tariffs on Canada and Mexico, 10% on China starting Tuesday
Written by Michael Cowden
February 1, 2025
The Trump administration will implement 25% tariffs on Canada and Mexico and 10% tariffs on China, according to a White House fact sheet and executive orders circulated on Saturday.
The administration said that it would tariff “energy resources” from Canada at a lower rate – 10%.
The tariffs will go into effect at 12:01 ET on Tuesday, according to an executive order. The White House documents made no mention of exemptions.
Trump said on Thursday that tariffs were imminent.
The fact sheet noted that President Trump said in November – a reference to a post on Truth Social – that the tariffs would apply to “ALL products coming into the United States, and its ridiculous Open Borders.”
Canada and Mexico have vowed to retaliate.
Note that Canada runs a trade surplus with the US, including in steel. But, broadly speaking, the surplus is because the US depends on heavy crude from Canada’s oil sands. Midwest refineries in particular rely on it.
The Trump administration said the tariffs were necessary because of a “national emergency” stemming from “illegal aliens and drugs.” It singled out fentanyl and the chemicals used to make it.
“Tariffs are a powerful, proven source of leverage for protecting the national interest,” the White House said in a statement.
“President Trump is using the tools at hand and taking decisive action that puts Americans’ safety and our national security first,” it added.
The documents mentioned steel only in passing. The fact sheet pointed out that Trump used “national security” to justify tariffs on steel and aluminum. That was a reference to Section 232, which Trump implemented in March 2018.
The measure introduced a 25% tariff on imported steel and a 10% tariff on imported aluminum. Trump came back to the same round numbers in these much broader tariffs.

Michael Cowden
Read more from Michael CowdenLatest in Trade Cases

Trump says Canada deal might not happen: Report
President Trump said a negotiated deal with Canada might not occur, and all existing tariffs, along with those set to take effect soon, will stay in place, according to media reports.

Steel trade groups applaud Trump’s S232 tariffs
Five trade organizations involved with North American steel have praised President Trump’s Section 232 tariffs on steel for helping the domestic industry.

Leibowitz on Trade: Bringing manufacturing back to the US
Industries that use steel in manufacturing employ many more workers than steel production. Raising the cost of steel for these customers will not increase manufacturing employment. In fact, it will probably hit employment hard.

China hits out at Canadian tariff actions
The Chinese government has threatened countermeasures on Canada following the Canadian government's announcement on curbing steel imports, according to media reports.

Canadian PM moves to put tighter check on steel imports
Canadian Prime Minister Mark Carney has announced new measures to limit steel imports into the country.