The spokesperson for the White House, Karoline Leavitt, denied reports about a possible delay in imposing tariffs on Mexico and Canada, and confirmed that the measure will take effect on Saturday, February 1.
Hours before the White House statement, Reuters had reported that, according to sources close to the matter, the Trump administration had decided to postpone the implementation of the tariffs until March 1. However, Leavitt strongly denied this information and assured that the trade measure remains on track for immediate enforcement.
“I saw that report, and it’s false,” the spokesperson stated. “I was with the president in the Oval Office, and I can confirm that tomorrow, President Trump will impose a 25 percent tariff on Mexico, a 25 percent tariff on Canada, and a 10 percent tariff on China.”
.@PressSec: “The president will be implementing tomorrow a 25% tariffs on Mexico, 25% tariffs on Canada and a 10% 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.” pic.twitter.com/lSoLuL9Lk5
— CSPAN (@cspan) January 31, 2025
What are tariffs?
Customs tariffs are taxes that a country applies to products entering its territory from abroad.
Since his campaign, Trump had warned that he would impose an initial 25% tariff on all imports from Mexico and Canada as a way to pressure these countries to curb illegal immigration and drug trafficking into the United States.
On January 20, the day he took office, President Trump revealed that tariffs on Mexico would begin to be implemented starting February 1.
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Why does Donald Trump want to impose tariffs on Mexico and Canada?
Trump argues that by imposing a 25% tariff—and periodically increasing this rate if Mexico does not respond—he would force Mexican authorities to act more aggressively against migration flows and drug trafficking.
The threat escalated with his warning that if the initial 25% is not effective, he would increase tariffs to 50%, 75%, or even 100% until he achieves his goal of “protecting” the U.S. from what he considers an “onslaught” of criminals and drugs.
How do tariffs affect Mexico?
Experts say the economic impact would be significant, as Mexico sends 85% of its exports to the United States. Uncertainty over these measures has kept the Mexican peso under pressure since the 2024 U.S. elections.
Trump’s policy of raising tariffs globally could lead to price increases for American consumers since many imported products from Mexico and other countries are cheaper than locally manufactured goods.
This measure could also generate trade tensions and affect key sectors of the U.S. economy, such as the automotive and agro-industrial sectors, which heavily rely on Mexican imports.
For Mexico, customs tariffs would mean a decrease in exports, which could translate into economic losses and a slowdown in strategic economic sectors.
Another concern is the potential departure of companies that manufacture their products in Mexico, taking advantage of the country’s lower costs.
Recently, General Motors announced that it is considering moving part of its production from Mexico to the United States.
A study by the Mexican Institute for Competitiveness (IMCO) analyzes the economic effects of the U.S. imposing tariffs on imports from Mexico and Canada. Here are its key findings:
- Increase in final product prices: The additional costs from tariffs would be passed on to consumers, reducing their purchasing power.
- Job losses in affected sectors: Previous studies have shown that industries highly exposed to tariffs tend to lose jobs. The U.S. Federal Reserve found that companies impacted by the 2018-2019 tariffs had 1.4% fewer manufacturing jobs and increased their prices by 4.1%.
- Competitive disadvantage for the region: North America would lose attractiveness compared to other economic zones with lower production costs and tariff-free access.
- Automotive: 50% of U.S. auto parts imports come from Mexico and Canada. A 25% tariff would significantly increase vehicle costs in the U.S. market.
- Energy: Canada and Mexico account for 69% of U.S. oil and gas imports. Raising the costs of these inputs could impact the entire economy, making industrial production and transportation more expensive.
- Food and agricultural products: Mexico and Canada are responsible for 79% of U.S. vegetable imports and 68% of bakery products. A price increase would affect consumers’ cost of living.
- Depending on the magnitude of the tariffs, the additional costs of imported goods could represent between $2,500 and $4,300 per year for an average U.S. family.
- The Tax Foundation estimates that tariffs would reduce U.S. GDP by 0.4% and eliminate 344,900 jobs.
- According to the International Monetary Fund, removing Trump’s previous tariffs (2018-2019) would increase U.S. GDP by 4% over three years. This suggests that imposing new tariffs would further slow down the economy.