President Donald Trump said Friday that a first round of tariffs on Canada, Mexico, and China will begin on his self-imposed deadline Feb. 1 but that some duties on oil and gas may be limited.
“We’re not looking for a concession,” Trump said about the state of negotiations, signaling that nothing can be done by China, Mexico, and Canada at this point to forestall this round of duties that Trump has planned for Saturday morning.
But the president also offered comments late Friday that suggested the immediate impact on oil and gas may be limited.
He said the oil tariffs he installs this weekend will “probably” come down to 10% in a nod to what emerged as a last-minute sticking point. But other duties on oil and gas could be in the offing as soon as Feb. 18, he added.
Trump also said he wasn’t concerned about the market reaction to his plan going into effect, saying tariffs have gotten a bad reputation before repeating his oft-repeated quip that, in his view, tariff is the most beautiful word in the dictionary.
President Donald Trump speaks to the press after signing an executive order in the Oval Office of the White House in Washington on January 31. (MANDEL NGAN/AFP via Getty Images) ·MANDEL NGAN via Getty Images
The comments from the president came after White House press secretary Karoline Leavitt told reporters the plan for 25% duties on Canada and Mexico and 10% rates on China remains in effect, and “those tariffs will be for public consumption in about 24 hours.”
The new back-and-forth Friday was the latest in a series of comments and signals this week that have left many businesses in wait-and-see mode.
The president downplayed the chances that this weekend’s new tariffs will cause inflation but did acknowledge “there could be some temporary short-term disruption.” Trump also listed a range of other products and places where he expects to place tariffs — but without clarity on exactly when.
He listed industries from semiconductors to steels to pharmaceuticals. He also outlined a plan to “absolutely” impose tariffs on the European Union in the future.
“Eventually we are going to put tariffs on chips,” he added at one point. The semiconductor comments came after a meeting with Nvidia (NVDA) CEO Jensen Huang.
Leaders in Canada and Mexico have meanwhile expressed confusion and frustration all week about what they can do, given Trump has cited issues of migration and illegal fentanyl as the rationale for the tariffs coming as soon as Saturday.
Matthew Holmes of the Canadian Chamber of Commerce weighed in late Thursday, calling any tariffs lose-lose.
“We will keep working with partners to show President Trump and Americans that this doesn’t make life any more affordable,” he said. “It makes life more expensive and sends our integrated businesses scrambling.”
President Donald Trump speaks to reporters Thursday at the White House Thursday about the mid-air crash between American Airlines and a military helicopter in Washington. (Celal Gunes /Anadolu via Getty Images) ·Anadolu via Getty Images
The uncertainty could already be weighing on business decisions, according to Charles Schwab’s Kevin Gordon, citing the effects of last weekend’s 10-hour trade war with Colombia that ended as quickly as it began.
“That nature of policy-making is what causes companies to maybe take a step back and halt their spending,” he said during a live conversation on Yahoo Finance.
Trump’s last round of trade tensions and brinksmanship in 2018 and 2019 also saw business spending slow materially, he added.
Each utterance from Trump’s administration has been closely watched throughout the week. Commerce secretary nominee Howard Lutnick even recently offered material for both sides of the debate.
Lutnick — who is set to be Trump’s top trade official if he is confirmed — began his Senate confirmation hearing Wednesday by saying he preferred “across-the-board” duties and specifically cited why he thinks they are preferable when dealing with countries like Mexico.
But later in response to a different question, he reminded that the Trump administration has a clear short-term off-ramp, calling this weekend’s possible duties “separate” from overall plans.
He also said if places like Mexico take action to shut their border to staunch migration and illegal drugs then — at least for now — “there will be no tariffs.”
Mexico’s President Claudia Sheinbaum during a press conference at the National Palace in Mexico City on January 28. (ALFREDO ESTRELLA/AFP via Getty Images) ·ALFREDO ESTRELLA via Getty Images
The lack of clarity has left a wide array of officials, from Fed Chairman Jerome Powell to the president of Mexico, in wait-and-see mode.
“We are going to be watching carefully,” Powell offered Wednesday. The central banker added that the range of possibilities remains “very, very wide” and that it’s not yet known precisely how any duties would filter through to US consumers.
Mexican President Claudia Sheinbaum was asked about 25% tariffs on her country this week and offered, “We don’t expect it will happen … but if it does, we have our plan.”
Likewise, Canadian Prime Minister Justin Trudeau warned Wednesday that his government is preparing a strong response if the US imposes tariffs on his nation.
Economists have projected that Trump going forward with his tariff plans for the two nations in full — and keeping them in place — could push both into a recession.
This post has been updated with additional developments.
Ben Werschkul is Washington correspondent for Yahoo Finance.
Every Friday, Yahoo Finance’sRick Newman and Ben Werschkul bring you a unique look at how US policy and government affects your bottom line on Capitol Gains. Watch or listen to Capitol Gains on Apple Podcasts, Spotify, or wherever you find your favorite podcasts.
