Donald Trump took time for golfing at his Trump International Golf Club in West Palm Beach, Florida, over the weekend, as reaction was building to his action on Saturday that appears to have begun trade wars with Canada, Mexico and China. Trump signed orders imposing new tariffs of 25% on goods from Mexico and Canada, and 10% on imports from China. Apparently aware that the tariffs on oil and gas from Canada could immediately send heating costs surging in the U.S. during what has been a brutal winter, Trump kept the new tariff on Canadian oil and gas to 10%.
On the morning of Feb. 3, Trump backed down and agreed to delay imposing the tariff on Mexico for a month after talking with Mexico’s president. He also was in talks with Canada’s Prime Minister Trudeau.
According to The Business Journal’s reading of the order to impose new tariffs on Canadian imports, consumer prices in the U.S. could see almost immediate increases this week since tariffs not only apply to imports, but also to goods that already have been imported and are being kept in warehouses to be drawn down.
“The modifications made to the HTSUS by this notice shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on February 4, 2025, and shall continue in effect until such actions are expressly reduced, modified, or terminated,” the order signed by Trump says.
Prime Minister Justin Trudeau immediately threatened to retaliate with tariffs on goods Canada imports from the U.S. He also raised the possibility of cutting off electricity that Canada sells to the U.S.
New York Gov. Kathy Hochul said of the tariffs, “New Yorkers don’t need a backdoor tax disguised as a tariff. In New York and across the Northeast, gas and electricity costs could skyrocket. Tariffs on Canadian lumber and building materials would drive up housing costs and stall construction. These tariffs will disrupt supply chains, slow production, and cost jobs. And when other countries hit back, our small businesses, farmers and manufacturers will take the hit.
“Republican members of New York’s congressional delegation have a choice: stand up for their constituents or let the Administration push through this disastrous policy. I urge New Yorkers to call them with a clear message — no backdoor tax.”
Connecticut’s Rep. John B. Larson, a Democrat and a member of the Ways and Means Subcommittee on Trade, denounced the new Trump tariffs.
“The president’s announcement of tariffs on our neighbors will drive up prices for hardworking Americans, while paradoxically, he is prioritizing another round of tax breaks for the ultra-wealthy and billion-dollar corporations,” said Larson. “Canada and Mexico are two of Connecticut’s biggest trading partners. These tariffs will hurt Connecticut workers, consumers, and businesses. This, along with his order to freeze federal funds for services people rely on like childcare centers, lifesaving cancer treatments, and community health centers, reveals his true priorities. Donald Trump and Elon Musk won’t lose a moment of sleep while everyday Americans are hurt by their policies.”
Senate Minority Leader Chuck Schumer of New York called the new tariffs “absurd” and said that he would work in the Senate to try to “undo this mess, gets costs down and get these billionaires out of the way.”
