In a significant development concluding weeks of heightened speculation, the White House officially announced on Friday that President Donald Trump is poised to impose substantial tariffs this weekend on key U.S. trading allies.
Karoline Leavitt, the press secretary for the White House, revealed that President Trump will implement a steep 25% tariff on goods imported from both Mexico and Canada, alongside a 10% duty on Chinese imports.
This action is being taken as a direct response to the ongoing crisis of illegal fentanyl trafficking, which the administration blames on these nations for facilitating the influx of this harmful substance into the United States.
While the White House has not elaborated on the specific mechanisms through which these tariffs will be enforced, they indicated that further details would be made available for public review at some point on Saturday.
The announcement had an immediate impact on financial markets, leading the Dow Jones Industrial Average to plummet more than 300 points, translating to a decline of approximately 0.7%.
In contrast, the S&P 500 saw a slight decrease, while the Nasdaq Composite experienced a modest increase.
Notably, all three major stock indices had been performing strongly earlier in the trading day prior to this announcement, highlighting the volatility introduced by the tariff news.
Multiple experts have warned that these tariffs will have major economic consequences for Americans, affecting prices, jobs, industries, and trade relationships.
Here’s a breakdown of what it could mean that many everyday goods imported from Mexico and Canada—such as cars, electronics, food (avocados, tomatoes, beef, dairy), and raw materials—would become more expensive.
Businesses that rely on these imports might pass the extra costs onto consumers, leading to inflation in multiple sectors.
Many U.S. manufacturers—especially the automotive, machinery, and agricultural sectors—depend on raw materials and components from Mexico and Canada.
Higher costs could lead to layoffs, outsourcing, or even plant closures. Industries like construction (which uses Canadian lumber) and retail (which sells Mexican-made goods) would also feel the impact.
These tariffs could also disrupt supply chains, making American-made cars and other products more expensive and less competitive globally.