On Saturday afternoon, president Trump signed executive orders that impose tariffs on imports from Mexico, Canada, and China effective Feb. 4. The details are as follows: the broad tariff will be 25% on all imports from Mexico and from Canada apart from energy, which would face a 10% tariff; there will also be a 10% tariff on imports from China. These tariffs would apply above and beyond existing tariffs. While the details of products eligible for the lower energy tariff have not been released, the list will likely cover oil, gas, and electricity. A Federal Register notice is likely to be published with implementation details, including specific product codes eligible for the lower rate.
The tariffs are scheduled to take effect at the start of Feb. 4. With only two days before implementation, the tariffs look likely to take effect, though a last-minute compromise cannot be completely ruled out. The White House fact sheet on the tariffs and the executive orders highlight fentanyl and immigration as the motivation for the tariffs, but there are no explicit criteria provided for lifting them beyond cooperation on and an improvement in the immigration and fentanyl situations.
Trump has conditioned removal of the tariffs on improvement in the immigration and fentanyl situations but has not provided specific goals. The White House has also highlighted a “retaliation clause” in the executive orders that states that should one of the countries “retaliate against the United States in response to this action through import duties on United States exports …or similar measures, the President may increase or expand in scope the duties imposed under this order to ensure the efficacy of this action.” While this is a clear warning against retaliation, it has no automatic effect.
