Trump has long promoted import tariffs as a method of negotiating deals and retaliating against countries he believes are "ripping off" the United States.
Trump announced direct tariffs on Mexico and Canada would be paused for one month, until March 4, 2025, after both countries agreed to take further steps to protect U.S. border security.
[1] In his campaigns for U.S. presidency, Trump promised to use tariffs to achieve a wide range of goals including preventing war, reducing trade deficits, improving border security, and subsidizing childcare.
Five weeks after the USMCA went into effect, Trump used an exemption for national security concerns to implement a 10% tariff on Canadian aluminum after claiming it was flooding the U.S.
"[17][18] On November 25, 2024, after winning reelection, Trump pledged to impose a 25% tariff on all imports from Canada and Mexico unless the countries took steps to curb illegal immigration and drug trafficking—particularly fentanyl—into the United States.
The Wall Street Journal noted that it was unclear under what economic or national security authority Trump could implement such a tariff and that doing so would violate the USMCA, which he had negotiated during his first term.
[20] On December 16, 2024, Trudeau announced a $1.3 billion security plan for the Canada-U.S. border which included the creation of a joint Canadian-U.S. "strike force" to combat transnational crime.
[21][22] During his inaugural address on January 20, 2025, Trump pledged to "immediately begin the overhaul of our trade system to protect American workers and families.
"[23] On February 10, 2025, Trump announced 25% tariffs on all steel and aluminum imports to the U.S., set to take effect on March 12, 2025, eliminating hundreds of exemptions previously granted by either himself or Joe Biden.
[24][9] Trump also said he would impose a new standard requiring steel to be "melted and poured" and aluminum to be "smelted and cast" within North America to prevent countries like Russia and China from circumventing other tariffs.
[34] According to Bloomberg News, Trump advisors Peter Navarro and Stephen Miller were the leading officials in the economic discussions regarding the imposition of tariffs.
[35] Trump's executive orders initially suspended the de minimis exemption, which waives tariffs and reduces scrutiny for low value shipments, for China, Mexico and Canada.
Reuters said China's "limited" response "underscored an attempt by Chinese policymakers to engage Trump in talks to avert an outright trade war".
[42] Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum condemned Trump's actions and threatened immediate economic retaliation, but on February 3, 2025, all three leaders negotiated a one-month delay on the tariffs.
[43][44] In return, Trump pledged to take measures to curb weapons trafficking to Mexico and to collaborate with Canada on their joint anti-crime "strike force".
[47] Before his second inauguration, Trump threatened to impose tariffs on Europe unless it reduced its trade deficit with the U.S. by increasing imports of American cars, agricultural products, and oil and gas.
[66] American refineries, particularly in the Midwest, rely on crude oil to process into gasoline, and projections indicate that gas prices could increase up to 50 cents per gallon in the region due to tariffs.
[65] On February 2, 2025, Canadian company Irving Oil released a statement, noting, “The majority of the product produced at our Saint John refinery is bound for the U.S. market… This tariff will result in price increases for our U.S. customers and have impacts on energy security and the broader economy.”[67] During his campaign, Trump promised voters he would cut energy prices in half during his first year in office.
[37] A 2023 U.S. House Select Committee report estimated that "nearly half" of all de minimis shipments originated from China and that Chinese e-commerce companies.
[39][36] On February 7, 2025, Trump suspended closing the exemption for China until the Secretary of Commerce notified him that adequate systems to process and collect tariff revenue were in place.