White House: No delay to Canada or Mexico tariffs, Feb. 1 still the target
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The White House said it will still roll out 25% tariffs on imports from Mexico and Canada, alongside 10% tariffs on China, on Feb. 1 — and threatened future tariffs on other imports from around the globe.
Why it matters: The tariffs would likely spark retaliation of an unknown magnitude, risking economic pain for businesses and consumers.
What they're saying: "There could be some temporary, short-term disruption, and people will understand that," Trump told reporters in the Oval Office on Friday when asked if tariffs would raise prices — which he said they do not.
- Many economists say the opposite is true: New analysis by the Tax Foundation said the proposed tariffs on China, Canada and Mexico would be an effective tax increase on U.S. households of $830 this year alone.
- Asked whether he was worried how financial markets would react to tariffs, Trump said simply: "No."
Between the lines: Trump also said he would "absolutely" impose tariffs on the European Union, though he offered few details.
- He said that the administration would "eventually" put tariffs on chips, steel, aluminum, copper and pharmaceuticals.
Catch up quick: Reuters reported earlier on Friday that the White House would push off tariff implementation on China, Mexico and Canada until March 1 — leaving a window for negotiation that could kill the plan altogether.
- "I saw that report and it is false," White House press secretary Karoline Leavitt said during a press briefing.
The big picture: There was whiplash across financial markets Friday after the report of the delay, the denial and then Trump's Oval Office statements.
- The U.S. dollar, which weakened on the initial delay report, immediately surged against both the Canadian dollar and the Mexican peso as Leavitt spoke.
- Tariffs lead to a stronger dollar, and the currency pairs have been incredibly sensitive to headlines in recent days.
What to watch: Trump's moves would further rattle trade relations with the top U.S. trade partners in one fell swoop. It is unclear which imports might be excluded, though Trump said crude oil from Canada would likely face lower tariffs.
- "Probably going to reduce the tariff a little bit on that," Trump said.
- A U.S. tariff would "set aside" the free trade agreement with Mexico and Canada known as USMCA, Mexican President Claudia Sheinbaum reportedly told a news conference.
Editor's Note: This story has been updated with comments from President Trump.
