By Hannah Parry
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President Donald Trump is planning to impose 25% tariffs on imports from Canada and Mexico starting tomorrow.
Trump had repeatedly promised to impose tariffs on the United States' closest trading partners, citing concerns over fentanyl flow and trade deficits.
The president said that the 25% duties on Canada and Mexico "may or may not rise with time."
What to Know
- On Thursday, Trump confirmed he is imposing the tariffs on Saturday, in a meeting with reporters at the White House.
- The tariffs may exclude oil, with Trump saying, "Oil is going to have nothing to do with it, as far as I'm concerned."
- He said that the decision was driven by issues such as the flow of fentanyl and large trade deficits.
- Researchers at Oxford Economics, an economic advisory firm, predicted Canada's gross domestic product would decline by 2.5 percent by early 2026, inflation and unemployment would rise sharply, and it would "push Canada into a recession in 2025" if the tariffs go ahead.
Newsweek's live blog is closed.
Jan 31, 2025 at 06:28 PM EST
Trump orders USDA to remove federal webpages that mention climate change
The United States Department of Agriculture ordered its website managers to "identify and archive or unpublish any landing pages focused on climate change," on Thursday, according to Politico.
By Friday afternoon, the United States Forest Service website for adaptation tools, including vulnerability assessments for wildfires, had gone dark.
Jan 31, 2025 at 06:05 PM EST
Multiple CDC webpages including on HIV, and LGBTQ youth removed over Trump order
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Multiple webpages for the Centers for Disease Control and Prevention (CDC), including pages on HIV, LGBTQ youth and pregnancy, have been removed to meet the deadline set by Donald Trump's executive order.
Signed on his first day back in office, the order "Defending Women From Gender Ideology Extremism and Restoring Biological Truth to the Federal Government," requires the federal government to only recognize two sexes, male and female.
A memo from the Office of Personnel Management ordered federal agency heads to remove "all outward facing media (websites, social media accounts, etc.) that inculcate or promote gender ideology" by 5 p.m. Friday.
Included in the webpages was one on food safety during pregnancy called "Safer Food Choices for Pregnant People," while titled Youth Risk Behavior Surveillance System is also down.
The Trump administration ordered the CDC to pause all external communications through February 1.
Leaders of the Infectious Diseases Society of America and the HIV Medicine Association said in a joint statement to CNN, "The removal of HIV- and LGBTQ-related resources from the websites of the Centers for Disease Control and Prevention and other health agencies is deeply concerning and creates a dangerous gap in scientific information and data to monitor and respond to disease outbreaks."
Jan 31, 2025 at 05:44 PM EST
Trump says pausing government websites not ‘bad idea’ amid outage reports
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President Donald Trump suggested a temporary pause on government websites may not be a "bad idea" amid reports of some webpages going dark on Friday.
"I don't know. That doesn't sound like a bad idea to me," Trump said when asked by a reporter whether websites would be paused to scrub them of references to Diversity, Equity and Inclusion (DEI) initiatives.
The Federal Aviation Administration (FAA) website appeared to be temporarily offline but had gone back up. Other government websites were still up by publication.
Public health data vanished from websites, entire webpages went blank, and employees removed pronouns from email signatures on Friday as federal agencies rushed to comply with a directive linked to Trump's order reversing protections for transgender individuals.
The Office of Personnel Management instructed agency heads in a memo sent on Wednesday to eliminate "gender ideology" from websites, contracts, and emails, mandating that these changes be implemented by 5 p.m. on Friday. The directive also called for agencies to disband employee resource groups, terminate related grants and contracts, and replace the term "gender" with "sex" on government forms.
Jan 31, 2025 at 05:29 PM EST
Gov. Greg Abbott orders Texas agencies to be ‘colorblind’ and remove all DEI policies
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Texas Governor Greg Abbott has ordered state agencies to be "colorblind" and remove all its diversity, equity and inclusion policies.
"DEI agendas divide us rather than unite us and have no place in the state of Texas," Abbott said in a statement, announcing the order. "These radical policies deviate from constitutional principles and deny diverse thought."
"That is why I directed all state agencies to eliminate any form of DEI attempting to divide Texans," Abbott added, according to the Dallas Morning News.
"We must always reject race-based favoritism or discrimination and allow people to advance based on talent and merit."
The order instructs agencies, including the state's education agency, to ensure all rules and policies disregard race.
Jan 31, 2025 at 05:08 PM EST
Trump officials to pause majority of federal websites today, reports say
The Trump administration is planning a pause on most federal government websites, CBS reports.
The sites are expected to "go dark" after 5 p.m, according to CBS reporter Jennifer Jacobs who cites Trump officials.
Jan 31, 2025 at 04:45 PM EST
Trump administration to ‘fire FBI agents involved in investigating the president’
The Trump administration is reportedly set to fire several FBI agents who were involved in the Jack Smith investigations.
Firings could begin as early as today, ABC News reports.
The administration is currently compiling a list of agents they believe may resist Trump's new agenda, or who were involved in the investigations into President Donald Trump's efforts to overturn the 2020 presidential election and his handling of classified documents. The full list will reportedly be ready by Monday.
The list may include multiple agents in the FBI's Washington, D.C. office, and the heads of field offices across the U.S.
Trump's nominee for FBI director, Kash Patel, said at his confirmation hearing that, "all FBI employees will be protected against political retribution," when asked whether agents who worked on Smith's investigations would be protected from "retribution."
CNN reports that at least six senior FBI leaders have already been ordered to retire or resign by Monday, or they would be fired.
Jan 31, 2025 at 04:17 PM EST
State department workers ordered to remove pronouns from email signatures
State department employees have been ordered to remove gender pronouns from their email signatures by 5 p.m. today.
"The Department of State is reviewing all agency programs, contracts, and grants that promote or inculcate gender ideology, and we are removing outward facing media that does the same," the new Under Secretary for Management Ambassador Tibor P. Nagy, said in an email titled "Defending Women," first obtained by NBC News.
"All employees are required to remove any gender identifying pronouns from email signature blocks by 5pm today."
Nagy added that bureaus would be reviewing trainings, forms and all plans involving "gender ideology."
Jan 31, 2025 at 04:00 PM EST
Stock market plunges after White House confirms tariffs to begin Saturday
Wall Street experienced a reversal of fortunes following the White House's confirmation that President Donald Trump would impose tariffs on several key U.S. trading partners. Initially, the stock market showed promise with early gains, but the official announcement caused stocks to surrender these gains and turn negative.
By Friday afternoon, the S&P 500 had fallen by 0.5%, and the Nasdaq composite dropped by 0.4%, both having shown solid gains during morning trading. The Dow Jones Industrial Average did not fare any better, slipping by 0.7%.
The market reaction underscores investor anxiety about the potential economic impact of the tariffs. Historically, trade tensions and the imposition of tariffs have led to market volatility as investors weigh the implications for global trade and economic growth.
Jan 31, 2025 at 03:56 PM EST
Trump planning up to 100% tariff on Taiwanese computer chips
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President Donald Trump said Monday he is also planning to place tariffs on imported computer chips from Taiwan, despite the U.S. tech industry's reliance on the territory's contract chipmaker, Taiwan Semiconductor Manufacturing Company (TSMC).
Trump's move toward putting tariffs on one of the world's largest exporters of semiconductors comes as China is making significant breakthroughs in AI development, with the release of DeepSeek, which has threatened U.S. control of the AI industry. Taiwan's chip technology supplies are in high demand.
Trump told Republicans in a speech Monday that tariffs on Taiwan would be aimed at returning the production of chips to the U.S, according to Business Insider. The President said companies would not want to pay a "25, 50, or even a 100 percent tax."
Taiwan produces around 90 percent of the world's top-level semiconductors via TSMC. These chips are vital to the systems used by Apple and other companies, as well as Nvidia, and tariffs could limit the access U.S. companies have to this vital market.
The strategy seems to be at odds with a U.S. strategy to contain China's access to the chips. TSMC is building a fabrication plant in Arizona, but it is not known how long it will take to be able to meet U.S. demand for high end AI chips.
Trump's Taiwan tariff proposal was met with skepticism from many familiar with the region, as it was seen as ill-timed considering accelerations in the race for AI developments.
Jan 31, 2025 at 03:46 PM EST
How do tariffs work?
A tariff is a tax imposed by a government on imported goods. When a foreign product enters the U.S., the importing business—the company bringing in the goods—must pay the tariff to U.S. Customs and Border Protection. This cost is typically added to the product's price, making the imported goods more expensive for consumers.
Trump's proposed 25 percent tariff means that for every $100 worth of goods imported from Canada or Mexico, an additional $25 tax would be applied before the product enters the U.S. market. Importers must decide whether to absorb the cost, reduce profit margins or pass it to consumers through higher prices.
In some cases, businesses shift supply chains, sourcing goods from other countries without tariffs, but this is not always possible due to cost, quality, or production limitations
Jan 31, 2025 at 03:35 PM EST
Will gas and oil be impacted by Trump’s tariffs?
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Trump's tariffs on Canada and Mexico could have a broad economic impact. In 2023, Canada supplied 52 percent of U.S. petroleum imports, while Mexico provided another 11 percent. Trump has hinted that crude oil might be exempt from the tariffs, stating, "Oil is going to have nothing to do with it, as far as I'm concerned."
However, he later added, "We may or may not. We're going to make that determination probably tonight—on oil."
Economists warn that imposing tariffs on Canadian and Mexican oil could drive up gasoline prices for U.S. consumers.
"The inclusion of Canada oil in a 25 percent tariff on Canada and Mexico would likely initially raise gasoline prices in the U.S. Midwest," Goldman Sachs analysts wrote in a note quoted by the Financial Post.
Trade lawyer Chandri Navarro of Baker & McKenzie told PBS News, "It's really thrown industry into this turmoil of anxiety. What industry likes is certainty. You're making production decisions, supply chain decisions, purchasing decisions five years out."
Jan 31, 2025 at 03:28 PM EST
Who pays for tariffs?
Despite being levied on foreign goods, tariffs are typically paid by U.S. businesses that import those goods, not by foreign governments or companies. Importers usually pass these costs on to consumers through higher prices, meaning American shoppers often bear the financial burden.
Matthew Holmes, public policy chief at the Canadian Chamber of Commerce, warned, "President Trump's tariffs will tax America first. From higher costs at the pumps, grocery stores, and online checkout, tariffs cascade through the economy and end up hurting consumers and businesses on both sides of the border."
In industries with slim profit margins, companies may absorb some of the cost, but many will raise prices on everyday goods, making tariffs effectively a tax on consumers.
Jan 31, 2025 at 03:25 PM EST
What is a tariff?
A tariff is a tax imposed on foreign-made goods, paid by the importing business to the government of its home country. According to the Council on Foreign Relations, tariffs are often used to protect domestic industries by making foreign goods more expensive and encouraging consumers to buy locally. However, they can also lead to trade wars and higher consumer costs.
Historically, countries have used tariffs for various purposes, including national security, protecting jobs and generating government revenue. However, modern trade agreements have reduced their prevalence, as many economists argue they tend to disrupt global supply chains and increase consumer prices.
Jan 31, 2025 at 03:07 PM EST
White House responds to Donald Trump’s use of profanity
White House press secretary Karoline Leavitt addressed President Donald Trump's public use of profanity, both during Friday afternoon's press briefing and in previous instances.
In America's increasingly divisive election cycles, many of the so-called "seven words you can never say on television", as coined by comedian George Carlin, actually have been uttered on TV, on the stump, at rallies and even alluded to in ads. This normalization of profanity is seen as a direct result of the way public speech has become rougher, particularly in the age of social media.
On Thursday, following Wednesday night's deadly collision between an American Airlines jet and an Army helicopter, Trump said that former Secretary of Transportation Pete Buttigieg ran the department "into the ground with his diversity."
Read the full story by Gabe Whisnant and Monica Sager on Newsweek.
Jan 31, 2025 at 02:48 PM EST
Justin Trudeau gives dire warning to Canadians ahead of Trump tariffs
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Prime Minister Justin Trudeau warned Canadians that they should expect "difficult times" as they brace for President Donald Trump's heavy tariffs, which will go into effect on Saturday.
Newsweek reached out to the White House, the U.S. State Department and Trudeau's office for comment via email on Friday.
Trump has promised to hit Canada and Mexico with 25 percent tariffs in order to force them to crack down on illegal immigration and fentanyl flowing into the United States.
Canada, the third largest exporter of goods to the U.S., provides the lion's share of American oil imports. In 2023, Canada accounted for 52 percent of the U.S.'s petroleum imports and almost all of its natural gas imports, the U.S. Energy Information Administration reported.
Trump's allies have argued that he only uses tariffs as a threat against other countries to force them into negotiations, but the administration briefly launched a series of punitive measures against Colombia on January 26 when its government rejected a flight with repatriated Colombians as part of the U.S. mass deportation operation.
Read the full story by Peter Aiken on Newsweek.
Jan 31, 2025 at 02:29 PM EST
Trump’s media company grants stock to board members, filings show
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Trump's social media company has awarded restricted stock to its board members, including Kash Patel and Linda McMahon, according to regulatory filings.
Patel, Trump's nominee for FBI director, and McMahon, his pick for education secretary, received stock grants from Trump Media & Technology Group, the parent company of Truth Social.
The restricted stock will convert into tradable shares over time, though specific timelines were not disclosed in the filings.
Jan 31, 2025 at 02:13 PM EST
Why does Donald Trump want tariffs on Canada, Mexico and China in 2025?
President Donald Trump will impose 25 percent tariffs on Mexico and Canada, coming into effect on Saturday.
Canadian Prime Minister Justin Trudeau has said: "Our nation could be facing difficult times in the coming days and weeks," in response to the Trump decision. Mexican President Pardo Sheinbaum expressed doubts over whether the tariffs will be enforced on February 1st, but said, "If it does happen, we also have our plan."
Trump has insisted these tariffs will go ahead.
So, why is Trump imposing tariffs on two of the US' biggest trade partners?
Read the full story by Tahar Rajab on Newsweek.
Jan 31, 2025 at 01:45 PM EST
Mexico bracing for tariffs with ‘cool head’ says President Claudia Sheinbaum
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President Claudia Sheinbaum said that Mexico is "prepared" for the 25% tariffs tomorrow.
"We will always defend the dignity of our people, respect for our sovereignty and a dialogue as equals without subordination," she said.
"We will wait, as I have always said, with a cool head, when taking decisions. We are prepared and we maintain this dialogue.
Sheinbaum said that the Mexican government is continuing their dialogue with the Trump administration.
However, the White House has confirmed that the 25% tariff on Mexico will begin tomorrow.
Jan 31, 2025 at 01:37 PM EST
Press Secretary Karoline Leavitt confirms China, Canada and Mexico tariffs begin tomorrow
White House Press Secretary Karoline Leavitt has confirmed that the tariffs on China, Canada and Mexico will begin tomorrow.
She said, during a Friday press conference, that Trump will impose, "25% tariffs on Mexico, 25% tariffs on Canada, and a 10% tariff on China for the illegal fentanyl that they have seen to our country, which has killed 10s of millions of Americans."
Jan 31, 2025 at 01:33 PM EST
White House press secretary Karoline Leavitt said Trump will sign proclamation honoring Black History Month
White House press secretary Karoline Leavitt said today, during a press conference, that Trump will sign a proclamation honoring Black History Month.
"It's in the works of being approved, and it's going to be ready for the president's signature to signify the beginning of that tomorrow," she said.
Leavitt was speaking after a Defense Intelligence Agency memo indicated it had ordered a pause of all activities and events related to Martin Luther King Jr. Day, Black History Month, Juneteenth, LGBTQ Pride Month, Holocaust Remembrance Day and several others. Veteran's Day was not affected.
Jan 31, 2025 at 01:20 PM EST
Donald Trump warns BRICS over dollar move: ‘Go find another sucker nation’
Donald Trump has threatened BRICS countries, warning them against replacing the U.S. dollar as a reserve currency and telling them, "Go find another sucker nation."
The use of the U.S. dollar by BRICS members, which include Brazil, Russia, India, China and South Africa, plays a major role in it being the world's reserve currency. If the bloc decides to step away from the dollar, it could decrease the U.S.'s financial dominance.
Trump's "America First" approach to trade and foreign policy has included tariff threats to several economic partners, namely Canada and Mexico but also BRICS member China
Trump wrote on Truth Social: "The idea that the BRICS Countries are trying to move away from the Dollar, while we stand by and watch, is OVER.
"We are going to require a commitment from these seemingly hostile Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy.
"They can go find another sucker Nation. There is no chance that BRICS will replace the U.S. Dollar in International Trade, or anywhere else, and any Country that tries should say hello to Tariffs, and goodbye to America!"
Jan 31, 2025 at 01:13 PM EST
Tariffs could lead to production cuts in Midwest and Rocky Mountains, warns Phillips 66
Phillips 66, a huge American multinational energy company headquartered in Texas, warned today during a conference call that Trump's tariffs could have a dire effect on production in the U.S.
The firm warned the 25% tariffs, which are set to be imposed on Canada and Mexico from tomorrow, could lead to production cuts in the Midwest and Rocky Mountain regions, First Squark reports.
Jan 31, 2025 at 01:01 PM EST
US envoy says China’s presence at Panama Canal is ‘security concern’
U.S. Special Envoy for Latin America, Mauricio Claver-Carone, said today that China's presence at the Panama Canal has "got completely out of hand", as he called on Panamanian President Jose Raul Mulino to "deal with it."
Claver-Carone was speaking ahead of Marco Rubio's scheduled visit to the country on Saturday - the first U.S.-Panama talks since Donald Trump threatened to take control of canal by force.
"This increasingly creeping presence of Chinese companies and actors throughout the Canal Zone, in everything from ports and logistics to telecommunications infrastructure and otherwise, which is very concerning, not only frankly to the national security of the United States, but frankly to the national security of Panama and to the entire Western Hemisphere," Claver-Carone said.
Rubio is also set to visit Guatemala, El Salvador, Costa Rica, and the Dominican Republic, where he is likely to discuss deportation flights.
Jan 31, 2025 at 12:50 PM EST
Trump to impose tariffs on Canada and Mexico this weekend—But who pays?
President Donald Trump is set to impose 25 percent tariffs on Canadian and Mexican imports, potentially disrupting nearly $1.6 trillion in annual trade. The tariffs, scheduled to take effect on Saturday, are being introduced as part of Trump's strategy to pressure Canada and Mexico to address illegal immigration and drug trafficking into the United States.
Questions remain about how these tariffs will impact businesses, consumers and the broader economy. A key issue in the debate is understanding who ultimately bears the cost of tariffs and how they function in global trade.
Tariffs are taxes on imported goods, typically paid by the importing businesses, which can then pass costs onto consumers through higher prices. In this case, the importing business would be any American company that purchases goods from foreign suppliers and brings them into the country for resale, manufacturing, or distribution. Trump's new tariffs could significantly raise costs for products ranging from automobiles to fresh produce, which flow across North American borders daily.
The potential economic consequences extend beyond price hikes. Canadian Prime Minister Justin Trudeau has vowed to retaliate with "forceful countermeasures," including potential duties on Florida orange juice. Mexico has also indicated it would respond in kind, arguing that the tariffs could cost 400,000 U.S. jobs.
Read in full from Jenna deJong on Newsweek.
Jan 31, 2025 at 12:41 PM EST
Trump official says tariff exceptions will be ‘few and far between’
A Trump official has said that the president is reviewing his Canada and Mexico tariffs for potential exceptions.
But the official, who declined to be named, told Reuters that such exemptions would be "few and far between."
Jan 31, 2025 at 12:27 PM EST
Trump’s special envoy meeting with Venezuela’s president Nicolas Maduro
Venezuela's president Nicolas Maduro is meeting with Donald Trump's envoy for special missions, Richard Grenell, on Friday.
They are expected to focus on deportation flights, sending Venezuelan migrants back from the U.S., as well as potentially the country's huge oil reserves, as well as other topics during the meeting in Venezuela.
Mauricio Claver-Carone, Trump's special envoy for Latin America, told reporters that Grenell would tell Maduro there would be "consequences" if Venezuela did not accept the deportations of Venezuelan "criminals and gang members."
"All I would do on this call is urge the Maduro government, the Maduro regime in Venezuela, to heed to special envoy Rick Grenell's message and to his demands and what he puts on the table, because ultimately there will be consequences," The Hill reports.
During his first term, Trump became frustrated that his sanctions and pressure had been unable to unseat Maduro, a socialist who has been served as President of Venezuela since 2013. His subsequent re-elections have widely been seen as a sham by most of the West.
Jan 31, 2025 at 12:09 PM EST
Could Donald Trump replace the IRS with tariffs? Economists weigh n
President Trump's frequent suggestion that he could eliminate the federal income tax and instead finance the government through high tariffs levied on foreign imports would undoubtedly upend America's fiscal status quo.
On day one, the president ordered that a hiring "freeze" be placed on government departments and agencies, and recently floated the idea of either terminating or relocating Biden-approved hires at the Internal Revenue Service (IRS) "to the border."
Taken together, these actions suggest that Trump may be entertaining the idea of abolishing the IRS—a long-standing goal of Libertarians and certain Republican lawmakers—or at least scaling back its operations and replacing it with a newly established External Revenue Service.
Experts have weighed in on this prospect, detailing to Newsweek how such plans could play out, while also offering assessments of the president's overall approach to tariffs and taxes.
Kimberly Clausing, economist and Professor of Tax Law and Policy at the UCLA School of Law, warned, "In general, this is a deeply impractical plan," Clausing, who previously served as Deputy Assistant Secretary for Tax Analysis in the U.S. Department of the Treasury, told Newsweek.
"First, we already have a Customs and Border Protection office...including officials who collect tariffs. Second, it seems like an odd move for an Administration supposedly focused on efficiency (see DOGE) to suggest a redundant government agency as a solution."
Asked whether there was any way the revenue generated from tariffs on Canada, Mexico and China, among others, could make up for the elimination of income tax, Clausing said: "Simply put, no. It wouldn't even be close."
Read in full from Hugh Cameron on Newsweek.
Jan 31, 2025 at 11:56 AM EST
Trump’s senior trade adviser says he doesn’t know if tariffs will actually be imposed Saturday
Donald Trump's senior trade and manufacturing adviser, Peter Navarro, said he did not know whether the president will actually impose the tariffs on Canada and Mexico on Saturday.
"I have no breaking news for you on that," Navarro told CNBC today. "I can't tell you when; I can talk a little about why."
He added that Trump wants to impose the 25% tariffs was because of fentanyl.
Jan 31, 2025 at 11:46 AM EST
Mike Pence warns Trump’s tariffs will ‘hurt Americans’
Former Vice President Mike Pence has criticized Donald Trump's proposed tariffs on Canada and Mexico, warning they will "hurt Americans."
"Targeted Tariffs Work But Trump's Plan Will Hurt Americans," Pence posted on X, sharing a Bloomberg article with a similar title.
Trump and his former vice president have had a rocky relationship in recent years.
Pence declined to endorse Trump in 2024 following Trump's refusal to concede the 2020 election. They fell out after the January 6, 2021 riots, when Trump encouraged his supporters minutes after being told Pence was in danger. Trump's supporters, who had been chanting "Hang Mike Pence," came within 40 feet of the vice president's hiding place.
Since then, Pence has become a spokesman for traditional conservatism in the Republican Party, clashing with the dominant MAGA populists. He is regularly booed by Trump's supporters when he attends GOP events, although the two men shook hands at Jimmy Carter's funeral.
Jan 31, 2025 at 11:33 AM EST
Democrat lawmaker brands tariffs a ‘tax on American families’
Rep. Pramila Jayapal has branded Trump's tariffs on Mexico and Canada, a "tax on American families."
"Trump announces 25% TAX on American families for all products imported from Canada and Mexico starting Saturday," Jayapal wrote on X, yesterday, as she shared an article about the tariffs.
Many experts have warned that Trump's tariffs on the U.S.'s closest trade partners would result in soaring prices on goods for Americans including on produce, gas and car parts.
Trump says he wants tariffs to stop the flow of fentanyl into the U.S. and to force American manufacturers to make their products in the U.S.
Jan 31, 2025 at 11:13 AM EST
Canada prepared to make ‘forceful’ response to tariffs
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Canadian Prime Minister Justin Trudeau warned that Canada will make an immediate and forceful response if Trump imposes the 25% tariffs tomorrow.
"If the president does choose to implement any tariffs against Canada, we're ready with a response – a purposeful, forceful but reasonable, immediate response," Trudeau said at ab advisory council on Canada-US relations.
"It's not what we want, but if he moved forward, we will also act," Trudeau added.
Jan 31, 2025 at 11:04 AM EST
OPINION: Screw around and find out: How Colombia proved that tariffs work
Gustavo Petro, a former teenage Marxist revolutionary who became Colombia's president in 2022, just got beat by the final boss: President Donald J. Trump. And he got beat because Trump's tariff threats, a cornerstone of his America First policy platform, worked.
The story began when Petro refused to repatriate Colombian aliens who have committed crimes in the U.S. and had been released by Democrat district attorneys and blue city police departments. Upon learning about Colombia's refusal to take their own criminals back, Trump posted to social media that he was imposing an immediate 25 percent tariff on Colombia, along with assorted other sanctions—whereupon Petro backed down not 47 minutes later, promising to send his own plane to Washington to pick up the migrants.
What's next? Mexico building the wall? Don't discount it! Mexico and Canada are facing similar threats of tariffs which might go into effect this weekend.
The weekend kerfuffle proved how effective tariffs can be: We give you access to our markets at a cost to our workers, and in exchange, we get to make demands—in the case of Colombia, to repatriate criminals. As a negotiation tool, tariffs might not be permanent. They can be removed quickly when a country strikes a deal with the U.S. To wit, Colombia's 25 percent tariff came and went in 24 hours.
Jan 31, 2025 at 10:53 AM EST
Justin Trudeau insists Canada border is strong ahead of tariffs, warns they will retaliate
Canadian Prime Minister Justin Trudeau insisted to a Canada-U.S. relations meeting today that their southern border is strong, ahead of tomorrow's tariffs.
President Donald Trump claimed he is imposing 25% tariffs on Canada and Mexico from Saturday because they have failed to stop the flow of fentanyl into America.
Trudeau said his government has responded to what Trump is "focused on and what is motivating him to consider applying tariffs as early as tomorrow".
But he warned that Canada was ready to retaliate with tariffs of their own if the U.S. went ahead.
"Our border is safe and secure," Trudeau said at the meeting. "Right now, we're showing the new American administration that they have a strong partner in Canada when it comes to upholding border security, all while simultaneously underscoring that we won't back down, that if tariffs are implemented against Canada, we will respond. We won't relent until tariffs are removed and, of course, everything is on the table."
He also warned that Canadians could be facing "difficult times" in the coming weeks if the tariffs do go into effect.
Jan 31, 2025 at 10:33 AM EST
Trump’s tariffs could send cost of car ownership skyrocketing
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The cost of owning a car—including buying a vehicle, paying for insurance and repairs, and filling up the tank at the gas station—could see a steep increase if President Donald Trump imposes significant tariffs on countries like Canada and Mexico, experts warned.
The overall cost of owning and operating a car, including fuel, maintenance, tires, insurance, license, registration, and taxes, has dramatically surged in the United States in the past few years.
According to data from the Department of Transportation, American drivers spent over $12,000 a year owning and operating their vehicles in 2023. Only two years before, they spent less than $10,000 a year. The 2024 Your Driving Costs study by AAA confirmed an upward trend in the cost of car ownership: last year, the average price of a new vehicle driven 15,000 miles annually was $12,297 a year, or $1,024 a month—up by $115 since last year's study.
Growing costs are adding a significant financial burden on U.S. households, many of which are already struggling with the higher cost of living.
The cost of owning a car in the U.S. is growing because new vehicles have, on average, higher price tags, repairs have become more expensive, and insurance premiums have increased due to costly maintenance and more risky behavior exhibited by drivers at the wheel.
"As cars have become more costly and complex, car ownership has grown increasingly expensive," Ivan Drury, Edmunds' director of insights, told Newsweek. Edmunds is an online tool providing information on new and used car inventory.
Read in full from Giulia Carbonaro on Newsweek.
Jan 31, 2025 at 10:20 AM EST
What goods will be most impacted by tariffs
These tariffs are expected to push up consumer prices significantly across these product categories.
The goods that will be hardest hit may include:
Gasoline
Impact: Price hikes of 40-70 cents per gallon, potentially reaching up to $1 per gallon due to combined tariff effects and seasonal price increases.
Reason: 70% of U.S. crude oil imports come from Canada and Mexico, which are essential for U.S. gasoline production.
Tomatoes and Avocados
Impact: Significant price increases.
Reason: Mexico is the dominant supplier, accounting for about 90% of U.S. avocado imports and a large share of tomatoes, cucumbers, bell peppers, and other vegetables. Replacement options are limited meaning meaning prices for the imports are likely to rise significantly.
Beer and Tequila
Impact: Prices likely to rise.
Reason: Mexico is a major exporter of alcoholic beverages to the U.S., with about $26 billion in imports in 2022.
Cars and Auto Parts
Impact: Higher prices for both finished vehicles and parts.
Reason: Mexico and Canada account for nearly half of all U.S. motor vehicle and auto parts imports, deeply linking the U.S. auto industry with these countries. Experts warn that auto manufacturers are likely to be "hugely affected."
Jan 31, 2025 at 10:07 AM EST
Donald Trump’s tariffs on Canada, Mexico may include major exception
President Donald Trump's 25 percent tariffs on Mexico and Canada, due to come into effect on Saturday, may have a significant exclusion.
Speaking to reporters on Thursday, Trump said, "Oil is going to have nothing to do with it, as far as I'm concerned," when asked whether the tariffs would cover Canadian crude.
He added that oil "may or may not" be covered by the tariffs, so it remains unclear whether he intends to spare energy imports from his tariff plans.
Newsweek has contacted the White House for comment via email.
Canada, the third largest exporter of goods to the U.S., provides the lion's share of American oil imports. In 2023, Canada accounted for 52 percent of the U.S.'s petroleum imports and almost all of its natural gas imports, the U.S. Energy Information Administration reported. Mexico accounted for 11 percent of U.S. oil imports in 2023.
The enforcement of 25 percent tariffs on both countries could result in higher pump prices for Americans, while sending ripples through the entire economy—given the reliance on energy for sectors such as manufacturing, transportation, logistics and agriculture. Increased inflationwould jeopardize Trump's central campaign promise of bringing down Americans' cost of living.
Read in full from Hugh Cameron on Newsweek.
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