President Donald Trump has moved forward with his threats to impose new tariffs on imports from Canada, Mexico, and China, as was made public on Friday evening.

The White House confirmed Trump’s decision during a press briefing Friday, with Press Secretary Karoline Leavitt stating that this action reflects President Donald Trump’s commitment to addressing trade imbalances between the U.S. and other nations.

Leavitt also noted that Trump wants to combat the alleged ”inflow of illegal fentanyl ” from these countries.

The tariffs take effect Saturday, Feb. 1, and will impose a 25% duty on goods imported from Canada and Mexico and a 10% levy on Chinese products.

While details about exemptions have not been made public yet, the announcement has already sparked wild concerns across the world over potential economic repercussions for both US consumers, who will have to pay for much more expensive products, and also for international trade partners, whose sales might plummet.

Economic impact of Trump tariffs

The newly announced tariffs by Donald Trump’s administration are expected to have significant economic consequences, as they will disrupt trade across the globe.

Economists have already warned that such measures could lead to higher prices for American consumers, as businesses may pass the added costs onto shoppers, something that will exacerbate inflationary pressures in the US economy.

Key imports from Canada include oil, lumber and a series of agricultural products. On the other hand, goods imported to the US from Mexico include vehicles and electronics, among others.

These are likely to see price increases very soon due to the tariffs. Similarly, Chinese imports like machinery and textiles will also face higher costs, reducing the available income of American households.

Canada and Mexico are two of the United States’ largest trading partners. The threat of Trump’s tariffs has forced them to already signal their intent to retaliate.

Trump’s decision could very soon disrupt supply chains and potentially harm the relationships the US has with these key allies. Furthermore, energy experts note that levies on Canadian oil imports will most probably increase fuel prices in the US, adding further strain to household budgets.

The European Union to be next

President Donald Trump has confirmed that the European Union (EU) will be the next target of his administration’s tariff measures. Speaking from the Oval Office on Friday, January 31, Trump stated that the U.S. will “absolutely” impose tariffs on EU goods, a move he justified by claiming that the bloc has treated the United States “terribly” in trade relations.

This will affect Greek exports to the US, unless there are exceptions. Greece primarily exports agricultural products and food to the American market, including feta cheese, yoghurt and olive oil .

Valdis Dombrovskis, the executive Vice President of the European Commission for An Economy that Works for People and European Commissioner for Trade, stated earlier in January that Europe would act “in a proportionate way,” if Trump imposes tariffs on European goods.