February 1, 2025

President Donald Trump took action Saturday to impose new tariffs on Canada, Mexico and China, which could have a sweeping impact on the American economy.

The additional tariffs on Canadian and Mexican goods will be 25 percent, although only 10 percent on Canadian energy, a White House official said. The new tariff on Chinese goods will also be 10 percent, as Trump has said for a while.

The move sets the stage for a possible North American trade war that economists say could hurt economic growth on the continent and increase inflation. The new duties take effect on Tuesday, but goods shipped before Saturday will not face the higher tax, the White House said.

Read more: