Trump says 25% tariffs on Canada, Mexico start Feb. 1

What happened

President Donald Trump Thursday affirmed that he will impose 25% import taxes on all goods from Canada and Mexico, America's top two trading partners, starting Saturday, though he said he "may or may not" exempt oil imports.

Who said what

"I'll be putting the tariff of 25% on Canada, and separately, 25% on Mexico, and we'll really have to do that," Trump told reporters in the Oval Office. He said those tariffs could rise if the two countries don't meet his demands on blocking migrants and fentanyl. "We don't need the products that they have," Trump said. "We have all the oil you need. We have all the trees you need, meaning the lumber."

"There would undeniably, indisputably be a negative economic impact if tariffs were to be enacted," Glenn Hamer, CEO of the Texas Association of Business, said to The Texas Tribune. Importers typically pass the added import taxes on to consumers, and tariffs on Canadian oil in particular "could undermine Trump's repeated pledge to lower overall inflation," The Associated Press said. Canada and Mexico said they have prepared retaliatory tariffs.

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What next?

Trump's advisers are "considering several offramps" to avert enacting "universal tariffs on Mexico and Canada," The Wall Street Journal said. Options include more targeted tariffs or a grace period to allow further negotiations.