Trump Reiterates Plan To Raise Tariffs Saturday On Mexico, Canada

President Donald Trump on Thursday said he will impose 25 percent tariffs on Canada and Mexico beginning Saturday, reiterating concerns about illegal migration, fentanyl and trade deficits in remarks to reporters.

"I'll be putting the tariff of 25 percent on Canada, and separately, 25 percent on Mexico, and we'll really have to do that," Trump told reporters while signing executive orders focused on aviation safety.

Trump cited a “number of reasons” for doing so. “No. 1 is the people that have poured into our country so horribly and so much. No. 2 are the drugs, fentanyl and everything else that has come into the country. And No. 3 is the massive subsidies we are giving to Mexico and Canada in the form of deficits," Trump said.

“Those tariffs may or may not rise with time,” the president added.

The remarks come amid ongoing discussions between the Trump administration and Mexican and Canadian officials, who are seeking to reassure the new president they are clamping down on border security to stave off the tariffs. Both countries have vowed to retaliate with tariffs of their own if Trump follows through on his threats.

The president made no mention of new tariffs on China. He previously said he was considering imposing 10 percent tariffs on China on that same timeline, also referencing their contribution to the flow of fentanyl into the United States and illegal migration.

Trump previously promised to slap 25 percent tariffs on Canada and Mexico on his first day in office but then said he had set a Feb. 1 deadline to impose the tariffs, sparking speculation that he might again delay.

Trump’s nominee for Commerce secretary, Howard Lutnick, seemed to indicate at his confirmation hearing Wednesday that Canada and Mexico could avoid the threats and said the countries were making progress toward addressing border security concerns.

On Tuesday, White House press secretary Karoline Leavittsaid Trump remains committed to new tariffs, but added that they have seen a “historic level of cooperation from Mexico.”

At a time when the White House is concerned about reducing high food prices, the threatened duties would hit more than $75 billion worth of agricultural imports from the two North American neighbors.

From Mexico, that includes more $34 billion worth of fruits and vegetables, about $4 billion worth of sugar and tropical products, and more than $3 billion worth of livestock and meat, as well as grains, oilseeds, dairy and poultry products, according to USDA data.

U.S. agricultural imports from Canada include more than $10 billion worth of fruits and vegetables, $9 billion of grains and feed, $6.5 billion of oilseeds, $6 billion of livestock and meats, and $4.5 billion of sugar and tropical products.

Mexico and Canada are also the top two U.S. markets, in that order, for U.S. agricultural exports, putting U.S. farmers on the front line of any retaliation.

The U.S. auto sector would also be hit hard by the duties. Last year, the United States imported more than $126 billion worth of autos and auto parts from Mexico and $46 billion from Canada.

“Our auto companies are very concerned about what those tariffs [on Canada and Mexico] might mean to costs, particularly to the cost of vehicles,” Sen. Gary Peters (D-Mich.) said Wednesday at Lutnick’s confirmation hearing. “I don’t think that’s something the American people want to see.”

In that vein, the American Automotive Policy Council, which represents Ford, GM and Stellantis, has called for autos and auto parts that comply with the U.S.-Mexico-Canada Agreement's strict auto trade rules to be exempted from the 25 percent duties.

Canada exported more than $110 billion worth of oil and other energy products to the United States. Both Canada and Mexico also exported hundreds of billions worth of industrial and consumer goods to customers in the United States.

The U.S. Chamber of Commerce has been on record against the tariffs since November, when Trump first threatened the action, warning they “would not solve our border problems, and instead would send prices soaring, costing the typical American family more than $1,000, with significant harm to U.S. manufacturers, farmers, and ranchers.”

Irie Sentner contributed to this report.