Trump Administration Says Tariffs on Mexico and Canada 'Still on The Books' To Start Feb. 1

President Donald Trump's press secretary Karoline Leavitt, making her debut in the White House press room, confirmed Tuesday the administration still plans to impose 25% tariffs on Mexico and Canada on Feb. 1, a move that could upend North American trade relationships.

Leavitt, who is the youngest White House press secretary at 27-years-old, told reporters that she spoke with the president Monday night and he indicated Feb. 1 was "still on the books" for imposing tariffs on both of its neighboring countries.

The press secretary's comments were not the first time the administration doubled down on the Feb. 1 kick off. Last week, Trump's first week in office, he made the announcement in response to reporters' questions while singing executive actions in the Oval Office.

Shortly after taking office last week, Trump set a Feb. 1 deadline for imposing 25% tariffs on imports from Mexico and Canada unless the countries move to halt flows of illegal immigrants and the deadly opioid fentanyl into the U.S., Reuters reports.

"The president has also put out specific statements in terms of Canada and Mexico, when it comes to what he expects in terms of border security,' Leavitt said. "We have seen a historic level of cooperation from Mexico. But again, as far as I'm still tracking, and that was last night talking to the president directly, Feb. 1 is still on the books."

Trump is making the bet that his executive actions can cut energy prices and tame inflation and that the tariffs will strengthen the economy instead of exposing consumers to higher prices, despite economy experts warning tariffs could further raise prices and hurt the economy. At the same time, it remains unclear whether his orders will be enough to foster the growing economy with lower prices that he promised voters, according to The Associated Press.

The administration's threats come after a brief standoff over the weekend between Trump and Colombian President Gustavo Petro. Angered by how deportees were being sent on military planes and with handcuffs, Petro turned back two deportation flights that were in the air and heading to Colombia. The quick dispute, which resulted in various social media posts, ended with threats of tariffs imposed by the U.S. government. A day later, Petro backed down.

But if tariffs end up being imposed on Canada and Mexico, the stakes would be much higher. The two neighboring countries are among the U.S.' largest trading partners, which along with China, account for over $2.1 trillion in annual imports and exports.

Disrupting trade flows within the highly integrated North American economy would be costly. Among its biggest victims would likely be the auto industry.

Automakers ship billions of dollars' worth of vehicles and parts across the U.S. borders with Canada and Mexico everyday, according to The New York Times. In the short run, tariffs on vehicles and parts from Canada or Mexico would lead to higher prices at dealerships and lower demand for cars.

"Tariffs will inflate car prices that many potential buyers already think are too high," said Erik Gordon, a business professor at the University of Michigan who closely follows the auto industry. "People will keep their old cars longer. That will be good for repair shops— where dealers often make more money than they do selling a new car— and put a lid on sales and production of new vehicles."