US President Donald Trump has reaffirmed plans to impose 25% border taxes on imports from Canada and Mexico, effective 1 February, but left open whether the measures will extend to oil shipments. He said the decision, aimed at curbing undocumented immigration, fentanyl trafficking and trade deficits, is necessary to safeguard US interests and borders.
Speaking from the Oval Office, Trump indicated he would also press ahead with new tariffs on China—ten per cent, by previous declaration—citing illicit fentanyl inflows as the driver behind hundreds of thousands of US deaths.
“With China, I’m also thinking about something because they’re sending fentanyl into our country,” the president said. “So China is going to end up paying a tariff also for that, and we’re in the process of doing that.”
Trump hinted during his re-election campaign that he would impose tariffs of up to 60% on Chinese goods but, upon his return to the White House, initially instructed his officials to review trade policies before taking direct action. While US imports from China have already flattened since 2018—partly due to tariffs from his first term—a renewed round of duties could re-ignite tensions between the world’s two largest economies. Earlier in January, China’s Vice Premier Ding Xuexiang told the World Economic Forum in Davos that Beijing was seeking “win-win” resolutions to trade issues but warned against rising protectionism.
Ottawa and Mexico City have both vowed to respond in kind if Washington proceeds with new border taxes. The move presents a risk to President Trump’s pledges to lower living costs for Americans, particularly if energy imports are targeted. Nearly 40% of the oil refined in the US is imported—most of it from Canada—and experts caution that tariffs could inflate consumer prices for petrol and everyday essentials.
“Tariffs are an import tax on goods produced abroad,” said one industry analyst. “They often trigger higher costs for consumers and businesses, which may lead to inflationary pressure on vital commodities like fuel.”
Trump’s administration, however, contends that taxes on foreign-made products encourage domestic consumption and protect American jobs. A White House spokesperson said the president remains committed to securing the US borders, tackling the opioid crisis, and rebalancing trade relationships—factors the administration believes justify the imposition of tariffs.