Payam Javan: President Donald Trump declared on Thursday his intention to implement a 25% tariff on imports from Mexico and Canada starting February 1, citing significant trade deficits and issues such as illegal immigration and fentanyl trafficking. Speaking from the Oval Office, Trump emphasized the need to address what he described as unfair trade practices by both neighboring countries. He indicated that these tariffs could increase over time and mentioned a pending decision on whether to exempt oil imports based on pricing and treatment by Mexico and Canada. This move reverses his earlier promise to delay the tariffs and follows his initial announcement before the November election.

The announcement has sparked strong reactions from Canadian and Mexican leaders, who have vowed retaliation against the United States. Ontario Premier Doug Ford threatened to cut off energy supplies, while Canadian Prime Minister Justin Trudeau warned of a coordinated national response to protect their economies. Mexican President Claudia Sheinbaum expressed skepticism about the tariffs taking effect but assured that Mexico has contingency plans, highlighting the deep economic ties with the U.S., where 80% of Mexican exports are directed. Additionally, Trump touched on a separate 10% tariff on China related to fentanyl precursor chemicals, though he remained undecided on its implementation. The impending tariffs mark a significant shift in North American trade relations, challenging long-standing agreements like NAFTA and USMCA.