Tariffs could cause 'some pain' for Americans, Trump says
President Donald Trump admitted Sunday that Americans could feel "some pain" from the trade war he just started with Canada, Mexico and China, but said that could all go away if Canada becomes our "Cherished 51st state."
In a Truth Social post, Trump took particular aim at Canada, leaving our closest neighbor and ally "perplexed" and a "little bit hurt," according to Canada’s U.S. ambassador.
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The steep import taxes could raise prices on a wide range of goods, from automobiles to computers, clothes, toys, gasoline and alcohol.
What’s the latest with Trump’s tariffs?
U.S. President Donald Trump talks to reporters from the Resolute Desk after signing an executive order to appoint the deputy administrator of the Federal Aviation Administration in the Oval Office at the White House on January 30, 2025 in Washington,
What we know:
Trump declared an economic emergency in order to place duties of 10% on all imports from China and 25% on imports from Mexico and Canada. Energy imported from Canada, including oil, natural gas and electricity, would be taxed at a 10% rate. Trump’s order includes a mechanism to escalate the rates charged by the U.S. against retaliation by the other countries, raising the specter of an even more severe economic disruption.
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The tariffs will go into effect on Tuesday, setting up a showdown in North America that could potentially sabotage economic growth.
What we don't know:
It’s not clear how long the tariffs will last, as there are no specific benchmarks that could be met to lift the new tariffs. An official told the Associated Press that the best measure would be fewer Americans dying from fentanyl addiction.
His administration has not said how high that price could be or what improvements would need to be seen in stopping illegal immigration and the smuggling of fentanyl to merit the removal of the tariffs that Trump imposed under the legal justification of an economic emergency. The tariffs are set to launch Tuesday.
What does Trump say about the tariffs?
What they're saying:
Trump on Sunday night threatened to impose steeper tariffs elsewhere, telling reporters that it will "definitely happen" with the European Union and possibly with the United Kingdom as well.
He brushed aside retaliatory measures from Canada, saying, "If they want to play the game, I don’t mind. We can play the game all they want."
Earlier on Sunday, in the Truth Social post, Trump railed against Canada's trade surplus with the United States: "We don’t need anything they have. We have unlimited Energy, should make our own Cars, and have more Lumber than we can ever use."
Trump contended that without that surplus, "Canada ceases to exist as a viable Country. Harsh but true! Therefore, Canada should become our Cherished 51st State. Much lower taxes, and far better military protection for the people of Canada — AND NO TARIFFS!"
"WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!)," Trump said in a social media post. "BUT WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID."
Dig deeper:
Despite Trump’s claim that the U.S does not need Canada, one-quarter of the oil that America consumes per day is from its ally to the north.
How has China responded to the tariffs?
What they're saying:
China’s Ministry of Foreign Affairs said the country's government "firmly deplores and opposes this move and will take necessary countermeasures to defend its legitimate rights and interests."
China began regulating fentanyl-related drugs as a class of controlled substances in 2019 and conducted "counternarcotics cooperation with the U.S.," the ministry said, calling on the U.S. government to correct what it considers wrongful actions.
The Ministry of Commerce in China said it would file a lawsuit with the World Trade Organization for the "wrongful practices of the U.S." and take measures to safeguard its rights and interests.
How has Canada responded to Trump’s tariffs?
Canada, Mexico order retaliatory tariffs on the U.S.
Canadian Prime Minister Justin Trudeau announced Saturday evening a 25 percent tariff on $150 billion of American goods in response to Trump. "This will include immediate tariffs on $30 billion worth of goods as of Tuesday, followed by further tariffs on $125 billion worth of American products in 21 days' time," said Trudeau.
What they're saying:
"The actions taken today by the White House split us apart instead of bringing us together," Canadian Prime Minister Justin Trudeau said in a somber tone as he announced that his country would put matching 25% tariffs on up to $155 billion in U.S. imports, including alcohol and fruit.
He channeled the betrayal that many Canadians are feeling, reminding Americans that Canadian troops fought alongside them in Afghanistan and helped respond to myriad crises from wildfires in California to Hurricane Katrina.
"We were always there standing with you, grieving with you, the American people," he said.
Trudeau warned of economic pain as the tariffs take effect and encouraged Canadians to "choose Canadian products and services rather than American ones." But he also voiced optimism in the enduring relationship between the two countries.
"It is going to have real consequences for people, for workers on both sides of our border. We don’t want to be here. We didn’t ask for this, but we will not back down in standing up both for Canadians and for the incredible successful relationship between Canada and the United States," Trudeau said.
The premier of the Canadian province of British Columbia, David Eby, specifically called on residents to stop buying liquor from U.S. "red" states and said it was removing American alcohol brands from government store shelves as a response to the tariffs.
How has Mexico responded to Trump’s tariffs?
What they're saying:
Mexico’s president also ordered retaliatory tariffs.
"We categorically reject the White House’s slander that the Mexican government has alliances with criminal organizations, as well as any intention of meddling in our territory," Mexican President Claudia Sheinbaum wrote in a post on X while saying she had instructed her economy secretary to implement a response that includes retaliatory tariffs and other measures in defense of Mexico’s interests.
"If the United States government and its agencies wanted to address the serious fentanyl consumption in their country, they could fight the sale of drugs on the streets of their major cities, which they don’t do and the laundering of money that this illegal activity generates that has done so much harm to its population."
What do experts say?
The other side:
A new analysis by the Budget Lab at Yale laid out the possible damage to the U.S. economy, saying the average household would lose the equivalent of $1,170 in income from the taxes. Economic growth would slow and inflation would worsen, and the situation could be even worse with retaliation from other countries.
"It doesn’t make much economic sense,’’ said William Reinsch, senior adviser at the Center for Strategic and International Studies and a former U.S. trade official. "Historically, most of our tariffs on raw materials have been low because we want to get cheaper materials so our manufacturers will be competitive ... Now, what’s he talking about? He’s talking about tariffs on raw materials. I don’t get the economics of it.’’
The Source: This report includes information from the Associated Press.