Trump, who is working from his Mar-a-Lago estate in Florida this weekend, said on Friday that there was little that the top three U.S. trading partners could do to forestall the tariffs.
He set the Feb. 1 deadline to push them to take strong action to halt the flow of fentanyl and precursor chemicals into the U.S. from China via Mexico and Canada, as well as to stop illegal immigrants from crossing southern and northern U.S. borders.
But during a lengthy White House exchange with reporters, Trump brushed aside the notion that his tariff threats were merely bargaining tools.
"No, it's not ... we have big (trade) deficits with, as you know, with all three of them."
He also said that revenue was a factor and the tariffs may be increased, adding: "But it's a lot of money coming to the United States."
Trump did, however, reference a potential carve out for oil from Canada, saying that tariff rate would be 10% versus the 25% planned for other Canadian imports. But he indicated wider tariffs on oil and natural gas would be coming in mid-February, remarks that sent oil prices higher.
Crude oil is the top U.S. import from Canada, reaching nearly $100 billion in 2023, according to U.S. Census Bureau data.
HIGHER COSTS
Trump acknowledged that the steep duties could result in higher costs being passed on to consumers and that his actions may cause disruptions in the short term, but said he was not concerned about their impact on financial markets.
Jake Colvin, president of the National Foreign Trade Council, which represents major U.S. companies on trade matters, said imposing tariffs on key U.S. trading partners "could impact the cost and availability of everything from avocados to air conditioners to cars and risks shifting the focus of our relationships away from constructive dialogue."
Although Trump speaks of "charging" other nations for tariffs, they are paid by importing companies and sometimes passed on to consumers.
Automakers would be particularly hit hard by higher costs, through tariffs on vehicles assembled in Canada and Mexico. Their vast regional supply chain, where components can cross borders several times before final assembly, would further exacerbate these costs.
And Trump said that more tariffs are coming, saying import taxes were being considered on European goods, as well as on steel, aluminum and copper, and on drugs and semiconductors.
White House spokesperson Karoline Leavitt said the tariffs would be implemented immediately, and details would be published on Saturday.
RETALIATION EXPECTED
Trump's move is expected to draw retaliatory tariffs, potentially disrupting more than $2.1 trillion in annual two-way U.S. trade with its top three trading partners.
Canada has drawn up detailed targets for immediate tariff retaliation, including duties on Florida orange juice, a source familiar with the plan said.
Canada has a broader list of targets that could reach C$150 billion ($103 billion) worth of U.S. imports, but would hold public consultations before acting, the source said.
Mexican President Claudia Sheinbaum has also threatened retaliation, but said she would "wait with a cool head" for Trump's tariff decision and was prepared to continue a border dialogue with him.
China has been more circumspect about its retaliation plans, but has vowed to respond to defend its trade interests.
China "firmly opposes" Trump's new duties, a spokesperson for Beijing's embassy in Washington said, adding: "There is no winner in a trade war or tariff war, which serves the interests of neither side nor the world."
($1 = 1.4524 Canadian dollars)
