Retaliation, inflation, disruption: What you need to know about Trump tariffs
In a sign of concern, the U.S. stock market dived on Friday after the news that Donald Trump would push forward with his months-old tariff threats against some of the United States' largest trading partners.
The U.S. president confirmed that 25 percent tariffs on imports from Canada and Mexico will be implemented starting February 1, White House press secretary Karoline Leavitt said earlier on Friday.
Speaking briefly to reporters on the same day, Trump said he would impose sweeping duties on chips, oil and gas, steel, and aluminum, adding that he was considering imposing tariffs on oil and gas starting February 18.
However, he noted that crude oil imports from Canada are likely to be taxed at a lower rate of 10 percent. He also indicated that broader tariffs on oil and natural gas would be introduced in mid-February, remarks that sent oil prices higher.
Trump also said late Friday that he would "absolutely" impose tariffs on imports from the European Union, though he stopped short of providing a specific timetable.
Retaliation set to follow
Trump's tariffs will likely invite retaliation. Canadian Prime Minister Justin Trudeau said on Friday that Canada is prepared to deliver a "purposeful, forceful but reasonable, immediate" response if Trump imposes tariffs on Canadian imports.
Canada is the largest supplier of U.S. energy imports – including crude oil, natural gas and electricity. Canada's share of U.S. crude oil imports increased from 33 percent (924 million barrels) in 2013 to 60 percent (1.4 billion barrels) in 2023, according to a U.S. Congressional Research Service report updated in January.