US President Donald Trump has said he will follow through with his threat to impose a 25% border tax or tariffs on imports from Canada and Mexico starting tomorrow, 1 February 2025.

However, Trump has said he is yet to decide whether oil imported from those countries will be subject to his newly announced tariffs.

“We may or may not,” Trump told reporters in the Oval Office on Thursday, 30 January 2025, referring to imposing tariffs on oil imports from Canada and Mexico. “We’re going to make that determination probably tonight.”

About 40% of crude processed in US oil refineries is imported, mostly from Canada.

Trump said the move is aimed at addressing undocumented migrants, fentanyl crossing US borders and reducing trade deficits with neighbouring countries.

Earlier, on his inauguration day, on 20 January 2025, President Trump announced his plans to impose steep import tariffs on key US trading partners, especially Canada, Mexico, and China.

As such, Trump has threatened to impose 25% tariffs on imports from Canada and Mexico, while China may face a similar 10% import tariff.

Trump’s Thursday announcement suggests he may now be ready to take action.

In light of these tariffs, Canada and Mexico have pledged to respond to US tariffs with their own measures while assuring the US government they are addressing issues with their borders.

Economists have expressed their concerns amidst these tariffs, saying it could lead to trade tensions between these countries. Furthermore, if the US imposes levies on oil imports from Canada and Mexico, it could jeopardise Trump’s commitment to reducing the cost of living.

However, Trump dismissed worries that tariffs on US trading partners could hurt the economy.