The White House on Friday afternoon announced that President Donald Trump’s threatened tariffs will go into effect almost immediately, starting at 12:01 AM Saturday. The tariffs — 25% on all goods from Canada and Mexico, and 10% on all goods from China — are being described as “draconian” and unnecessary. They sparked an immediate market selloff and are expected to cause prices to spike on common and essential items such as gas, groceries, beer, and even sneakers.
“If enacted,” writes Steven Greenhouse at The Guardian, “tariffs will increase inflation, slow economic growth, and result in US consumers footing the bill.”
Columbia University economics professor Joseph Stiglitz, a Nobel prize winner in economic sciences, told The Guardian: “Virtually all economists think that the impact of the tariffs will be very bad for America and for the world.”
“They will almost surely be inflationary,” he added.
Gas prices are expected to jump as much as 70 cents per gallon, according to ABC News, which reports that a “seasonal price hike set to take effect within weeks” could mean consumers will be paying up to $1.00 more per gallon.
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“U.S. consumers grappling with soaring prices for beef and eggs will face even higher costs for meat, vegetables and fruit if President Donald Trump imposes tariffs on Canadian and Mexican imports, economists and food industry executives said,” Reuters reported. “Consumers have struggled with high inflation since the COVID-19 pandemic and voted for Trump in part due to discontent with higher prices. Trump pledged to bring down costs for ordinary Americans.”
Washington Post economic columnist Heather Long said, “Trump’s trade war is here. Trump says today he will ‘absolutely’ be imposing tariffs on Europe soon, too.”
Earlier on Friday, Long noted that it “would truly be crazy for President Trump to slap a 25% tariff on ALL Canadian and Mexican imports. It would cost American families ~$800/year It would spike gas prices (which only last week Trump said were a ‘national emergency’ and needed to come down). US refineries *need* heavy crude from Canada & Mexico and currently imports ~4 million barrels a day. It would harm US manufacturing, esp. the auto industry.”
“The worst part?” she added: “Trump can get what he wants on the border without having to do this draconian step.”
Other experts say Americans could see annual cost increases of $1250.
Joey Politano, who writes about economics on Substack, mocked Trump’s tariff plans as “incredibly dumb.”
I can’t believe they’re not even exempting Canadian oil lmao. This is incredibly dumb. https://t.co/oADITdsqjI
— Joey Politano 🏳️🌈 (@JosephPolitano) January 31, 2025
Trump explained that the tariffs announced Friday are just the start.
TRUMP: “Eventually we’re going to put tariffs on chips, we’re going to put tariffs on oil & gas…I think around the 18th of Feb. …we’re going to be putting tariffs on steel & aluminum & ultimately copper. Copper will take a little bit longer. And that’ll happen pretty quickly” pic.twitter.com/tSaYGZFD5n
— JM Rieger (@RiegerReport) January 31, 2025
Some experts say Trump’s tariffs could also violate his own USMCA trade agreement, the United States–Mexico–Canada Agreement, which is a revised version of NAFTA.
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“Tariffs at those levels and at that scope would effectively destroy the agreement that Trump himself negotiated and always brags about,’’ Scott Lincicome, a trade analyst at the libertarian Cato Institute, told the Associated Press.
There’s also another issue.
“The tariffs would also invite retaliation,” the AP also reported. “Doug Ford, the premier of Ontario, has already vowed to counterpunch by pulling American alcohol off store shelves in the Canadian province – no idle threat; Canada is the world’s No. 2 market for America’s distilled spirits (behind the 27-nation European Union).”
Former Canadian Minister of Finance Chrystia Freeland, running to become Canada’s prime minister, appeared to agree, and blasted Trump’s tariffs.
“I would publish a retaliation list,” said Freeland in a video (below). Noting that Canada is the United States’ “single biggest expert market — by a long shot,” Freeland said her country has “huge leverage” over the U.S.
“If Donald Trump slaps 25% tariffs on Canadian goods, we must hit back—dollar for dollar—starting with 100% tariffs on all Tesla vehicles and U.S. wine, beer, and spirits. We must protect Canadian workers and businesses.”
If Donald Trump slaps 25% tariffs on Canadian goods, we must hit back—dollar for dollar—starting with 100% tariffs on all Tesla vehicles and U.S. wine, beer, and spirits. We must protect Canadian workers and businesses. https://t.co/OX0nImM39w pic.twitter.com/FWFwWdbQ9X
— Chrystia Freeland (@cafreeland) January 31, 2025
Meanwhile, White House Press Secretary Karoline Leavitt appeared unwilling to directly answer questions about Trump’s tariffs, instead attacking the media and insisting Trump has a broad economic plan with which he will implement tariffs, cut inflation, cut taxes, and expand oil production, all, apparently, while not negatively impacting Americans’ wallets.
Reporter: If those tariffs do increases prices, will the administration reverse them?
Leavitt: That’s a hypothetical question. The President is intent on ensuring that he effectively implements tariffs while cutting inflation and costs for the American people.. pic.twitter.com/SI8A85l0xG
— Acyn (@Acyn) January 31, 2025
Former U.S. Treasury senior spokesperson Megan Bates-Apper, responded to Leavitt’s above remarks: “The @WhiteHouse is already dodging questions on whether they will keep prices low for Americans. This isn’t exactly a gotcha…”
Anthony Scaramucci, the former Trump White House Director of Communications and a financier who owns the investment firm SkyBridge Capital, commented, “And on the 11th day Trump gave everyone a tax increase.”
Watch the videos above or at this link.
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Image via Reuters
