Trump puts Europe in crosshairs as he stands firm on tariffs for Mexico, Canada

US President Donald Trump has confirmed he will impose hefty new tariffs of 25 per cent on goods from Mexico and Canada, and 10 per cent on imports from China, from Saturday (US time).

The president also said he was considering imposing import taxes on European goods, as well as on steel, aluminum and copper, and on drugs and semiconductors.

President Donald Trump prepares to board Air Force One on Friday, en route to his Florida estate.Credit: AP

“Am I going to impose tariffs on the European Union? You want the truthful answer or shall I give you a political answer? Absolutely. The European Union has treated us so terribly,” Trump told reporters in the Oval Office on Friday.

Oil from Canada will be treated differently from other goods from Canada and Mexico, Trump said, with that tariff rate to be reduced to 10 per cent. He indicated wider tariffs on oil and natural gas would be coming in mid-February, remarks that sent oil prices higher.

Trump has been threatening the tariffs for weeks, saying they would be imposed on February 1 and remain in place until the countries did more to stem the flow of both migrants and fentanyl over the United States border.

Trump said he understood the duties could result in higher costs being passed on to consumers and acknowledged his actions may cause disruptions in the short term.

Most economists estimate such sweeping import taxes, and the likely retaliation, would disrupt economic activity around the globe.

Asked if there was any opportunity for the three top US trading partners to delay the tariffs, Trump said: “No, no. Not right now, no.”

He also brushed away the notion his threats for levies were a bargaining tool. “No, it’s not … we have big [trade] deficits with, as you know, with all three of them,” he said.

“It’s something we’re doing, and we’ll possibly very substantially increase it, or not, we’ll see how it is,” Trump said. “But it’s a lot of money coming to the United States.

“We’re going to be putting tariffs on steel and aluminum, and ultimately copper. Copper will take a little longer.”

Financial markets have been whipsawed by the rapid-fire – but still not fully clear – developments on Trump’s tariff plans, with currency trading showing particular volatility.

The Canadian dollar and Mexican peso both weakened while Treasury bond yields rose, and stocks ended the day lower.

Still, Trump said he was not concerned about the reaction of financial markets to his plans to impose tariffs.

A White House spokesperson said there would be no delay in the implementation.

“The president will be implementing tomorrow 25 per cent tariffs on Mexico, 25 per cent tariffs on Canada, and a 10 per cent 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,” White House press secretary Karoline Leavitt said.

Reuters

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