Trade Cases

Trump to place 25% tariffs on Canada and Mexico, 10% on China starting Tuesday

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

Michael Cowden is managing editor for Steel Market Update. Cowden has covered the steel industry since 2007. He specializes in flat-rolled steel but has also reported on steel long products, steel pipe and tube, and aluminum. Before joining SMU, Cowden held reporting jobs at Fastmarkets AMM in Chicago, the Associated Press in Pittsburgh, and the Cambodia Daily in Phnom Penh. He has also worked as a copy editor and in marketing at the University of Chicago Press. Cowden has a BA in English from the University of Chicago and an MSJ journalism from Northwestern University’s Medill School of Journalism. Contact him at michael@steelmarketupdate.com or 724-759-7872.