President Donald Trump’s 25% tariffs on imports from Canada and Mexico and 10% tariffs on Chinese imports are expected to take effect as soon as today, according to the White House. Trump has said the tariffs are meant to pressure the three nations to curb illegal immigration and fentanyl trafficking into the US.
Canada, Mexico, and China are America’s three largest trading partners, accounting for over 40% of the goods imported into the US last year (see charts). Total trade in goods and services with all three countries exceeded $1T in 2024. The tariffs could significantly impact Canada and Mexico as roughly 70% to 80% of their goods and services are exported to the US. Both North American countries have already said they would respond to US tariffs with their own measures.
The tariffs could raise prices for American consumers and businesses on various goods, including produce, lumber, and electronics. Trump previously said he was considering an exemption for oil imports, but the White House didn’t provide further details. Collection on the tariffs is reportedly expected to begin March 1. See how tariffs work here.
