Business
Trump Will Hit Mexico, Canada and China With Tariffs

President Trump plans to impose stiff tariffs on Mexico, Canada and China on Saturday, a move aimed at pressuring America’s largest trading partners into accepting more migrants and halting the flow of migrants and drugs into the United States.
Mr. Trump will put a 25 percent tariff on goods from Mexico and Canada, along with a 10 percent tariff on Chinese products, Karoline Leavitt, the White House press secretary, said in a news briefing Friday.
Speaking to reporters in the Oval Office on Friday, Mr. Trump said the tariffs were punishment for Canada, Mexico and China allowing drugs and migrants to flood into the United States.
Mr. Trump’s decision to hit America’s trading partners with tariffs could mark the beginning of a disruptive and damaging trade war, one that is far messier than the conflict that defined Mr. Trump’s first term.
Back then, Mr. Trump placed tariffs on nearly two-thirds of Chinese imports, resulting in China hitting the U.S. with levies of its own. Mr. Trump also imposed tariffs on steel and aluminum, inciting retaliation from the European Union, Mexico and Canada.
While the tariffs against allies were viewed as controversial, they were relatively limited in scope. It remains to be seen exactly what products Mr. Trump’s new tariffs apply to, but the president has implied that they would be expansive and cover imports from Canada and Mexico, close allies of the United States.
Mr. Trump said on Friday that he would also “absolutely” impose tariffs on the European Union, saying they had “treated us so terribly.” He added that the United States would eventually put tariffs on chips, oil and gas — “I think around the 18th of February,” he said — as well as later levies on steel, aluminum and copper.
Canada, Mexico and China are America’s three largest trading partners, supplying the United States with cars, medicine, shoes, timber, electronics, steel and many other products. Together, they account for more than a third of the goods and services imported to or bought from the United States, supporting tens of millions of American jobs.
The three governments have promised to answer Mr. Trump’s levies with tariffs of their own on U.S. exports, including Florida orange juice, Tennessee whiskey and Kentucky peanut butter. All three of those states have Republican senators representing them in Congress and voted for Mr. Trump in 2024.
Mr. Trump’s tariffs would immediately add a surcharge for the importers who bring products across the border, most of which are U.S. companies. In the nearer term, that could disrupt supply chains and lead to shortages, if importers choose not to pay the cost of the tariff.
If importers do pay the tariff, it will probably translate into higher prices for some American goods, as those companies generally pass the cost of tariffs on to their customers.
“Hopes that Trump’s tariffs threats were merely bluster and a bargaining tool are now crumbling under the harsh reality of his determination to deploy tariffs as a tool to shift other countries’ policies to his liking,” said Eswar Prasad, a trade policy professor at Cornell University.
Mr. Trump had said in November that he would put the tariffs on Canada, Mexico and China, in an effort to halt the flow of migrants and drugs, particularly fentanyl, into the United States.
The threat set off a scramble from Canadian and Mexican officials, who tried to persuade the administration to hold off on tariffs by engaging in last-minute talks with Secretary of State Marco Rubio and detailing the efforts they were making to police the border.
Auto, agricultural and energy companies have all been pushing the Trump administration hard not to apply tariffs, and have called for an exclusions process that could give some products an exemption.
Marcelo Ebrard, the Mexican economy minister, said Friday that tariffs would most likely lead to shortages in specific goods, and that U.S. prices on Mexican goods would increase. He called the move “a strategic mistake” by the Trump administration.
“The main impact is clear: Millions of families in the United States would have to pay 25 percent more,” he said.
Prime Minister Justin Trudeau of Canada, in a post on X on Friday afternoon, said that “no one — on either side of the border — wants to see American tariffs on Canadian goods.” He said that “if the United States moves ahead, Canada’s ready with a forceful and immediate response.”
A spokesman for the Chinese embassy said that China firmly opposed tariffs and that any differences or frictions should be resulted through dialogue. “There is no winner in a trade war or tariff war, which serves the interests of neither side nor the world,” the spokesman said.
Mr. Trump’s advisers had been weighing different options for the tariffs, like applying them to specific sectors, such as steel and aluminum, or delaying their effective date for several months, according to people familiar with the planning.
Ms. Leavitt said the president had chosen to impose tariffs because the countries “have allowed an unprecedented invasion of illegal fentanyl that is killing American citizens, and also illegal immigrants into our country.”
“The amount of fentanyl that has been seized at the southern border in the last few years alone has the potential to kill tens of millions of Americans,” she said. “And so the president is intent on doing this.”
At both borders, the number of illegal crossings has dropped sharply.
The number of unauthorized crossings at the southern border in December 2023 reached nearly 250,000, overwhelming the Border Patrol and causing the government to shut down a port of entry. At the northern border, the flow of migrants crossing illegally skyrocketed during the 2024 fiscal year. During that time, more than 23,000 arrests were made of migrants crossing illegally — two years before that figure was around 2,000.
The situation at the border has changed since then.
In December, agents made roughly 47,000 arrests at the southern border and 510 at the northern border.
The economic fallout from the tariffs would depend on how they were structured, but the ripple effects could be broad. Canada, Mexico and the United States have been governed by a trade agreement for more than 30 years, and many industries, from automobiles and apparel to agriculture, have grown highly integrated across North America.
Mary Lovely, a senior fellow at the Peterson Institute for International Economics, said the tariffs would be “very costly” for U.S. businesses.
U.S. factories rely on inputs from both countries, including minerals and timber from Canada and auto parts from Mexico. The tariffs would also go against efforts that U.S. companies have made in recent years to move out of China, at the urging of the Trump and Biden administrations, Ms. Lovely said.
According to economists at S&P Global, the auto and electric equipment sectors in Mexico would be most exposed to disruption if tariffs were enacted, as would mineral processing in Canada. In the United States, the largest risks would be to the farming, fishing, metals and auto sectors.
Jonathan Samford, the president of Global Business Alliance, which represents international companies, said the tariffs might result in rising costs for U.S. consumers, slowdowns for U.S. businesses and lost opportunities for future investment.
In his remarks from the Oval Office Friday, Mr. Trump said he would “probably” reduce the tariff on Canadian oil to 10 percent. Roughly 60 percent of the oil that the United States imports comes from Canada, and about 7 percent comes from Mexico, and experts have warned that cutting off those flows could cause American energy prices to spike.
While the United States is the world’s largest oil producer, refineries need to mix the lighter crude produced in domestic fields with heavier oil from places like Canada to make fuels like gasoline and diesel.
The potential economic implications from tariffs are also complicating matters for the Federal Reserve, which is still trying to wrestle inflation down to its 2 percent target. The Fed this week held interest rates steady, after a series of cuts, amid persistent inflation and questions about how the tariffs would play out.
On balance, most economists expect higher trade barriers to raise prices for U.S. businesses and households, which could lead to a temporary burst of higher inflation. Whether that escalates into a more pernicious problem will depend on whether Americans’ expectations about future inflation start to shift higher in a meaningful way.
Ernie Tedeschi, the director of economics at the Yale Budget Lab, estimates that a 25 percent tariff on all Canadian and Mexican imported goods — paired with a 10 percent tariff on all Chinese imports — would lead to a permanent 0.8 percent bump in the price level, as measured by the Personal Consumption Expenditures price index. That translates to roughly $1,300 per household on average. Those estimates assume that the targeted countries enact retaliatory measures and that the Federal Reserve does not take action by adjusting interest rates.
Mr. Tedeschi expects tariffs on that level to eventually shave 0.2 percent off gross domestic product once inflation is taken into account.
Mr. Trump’s top economic advisers have disputed the idea that the tariffs fuel inflation, and argued that exporters from countries such as China would lower their prices in the face of higher U.S. tariffs.
In the press briefing, Ms. Leavitt said inflation had remained subdued in Mr. Trump’s first term, despite tariffs being imposed. And she said the president was undertaking other policies that would lower inflation, like passing tax cuts and encouraging energy production.
Hamed Aleaziz, Vjosa Isai and Emiliano Rodríguez Mega contributed reporting.

Business
Intuitive Machines’ Athena Lander Is on the Moon, but Its Fate Is Unclear

Athena didn’t crash. But what did happen to it?
Hours after the 15-foot-tall robotic spacecraft arrived at the moon’s surface, closer to the lunar south pole than any spacecraft has been, it remained unclear whether its touchdown was smooth enough to perform its intended work, or if it toppled over in the process, potentially limiting the mission’s scientific achievements.
“We’re trying to evaluate exactly what happened in that last bit,” Tim Crain, the chief technology officer of Intuitive Machines, said at a news conference.
The spacecraft is almost identical to Odysseus, the lander that the company sent to the moon last year. Odysseus was the first commercially operated vehicle to successfully land on the moon. But that success came with an asterisk when the vehicle toppled shortly after reaching the ground.
It appears that might have happened again.
At a post-landing news conference, Steve Altemus, the chief executive of Intuitive Machines, said the spacecraft had sent back conflicting data about whether it was standing upright or tipped over. But a sensor known as an inertial measurement unit offered a perhaps convincing clue that Athena was on its side.
As it headed to the lunar surface, laser instruments that measured the lander’s altitude were providing noisy data, which may have contributed to the botched landing.
Until that final descent, Athena had performed much more smoothly than the Odysseus lander a year ago, said Dr. Crain of Intuitive Machines. “We were expecting a fully successful landing,” he said.
Mr. Altemus said it was too soon to determine how much of the planned mission could still be salvaged. Athena’s payloads include a drill, three small rovers and a rocket-powered hopping drone.
“When we get that full assessment, we will then work closely with NASA science and technology groups to identify science objectives that are the highest priority,” Mr. Altemus said. “And then we’ll figure out what the mission profile will look like.”
The spacecraft is not generating as much power as it should, probably because the solar panels are not pointed in the correct direction.
Images from cameras on the spacecraft will help Intuitive Machines figure out the orientation of the spacecraft. Dr. Crain said the spacecraft probably set down outside of the planned landing zone but was confident it was still somewhere on Mons Mouton, a high plateau near the south pole that Athena was to explore.
Images from NASA’s Lunar Reconnaissance Orbiter, which will pass over the landing site, could pinpoint Athena’s precise location.
It has been a busy week in spaceflight and on the moon. Intuitive Machines was the second company to reach the lunar surface this week, after Firefly Aerospace, another Texas space company, successfully reached the Mare Crisium region of the moon on Sunday morning.
“Any time humanity puts a lander on the moon, it’s a good day,” Dr. Crain said.
The main customer of both missions is NASA under its Commercial Lunar Payload Services program, which hires private companies to take NASA-financed science and technology payloads to the lunar surface. The NASA contract for this mission is worth up to $62.5 million, but Intuitive Machines may not be paid the full amount.
Shares of Intuitive Machines, which trades under the name LUNR after going public in 2023, tumbled after reports of the spacecraft’s problems. Its stock fell 20 percent on Thursday.
The main payload on Athena is a drill for NASA that will extract lunar soil to be sniffed by a mass spectrometer for frozen water and other compounds. NASA officials said it might be possible for the drill to work, even if the spacecraft was not vertical. “It doesn’t have to be directly where I can drill straight down,” said Clayton Turner, the associate administrator for NASA’s space technology mission director. “There are other options we can use, too.”
Also aboard is a rover the size of a small dog that will test a Nokia cellphone network on the moon, and two smaller rovers, one built by the Massachusetts Institute of Technology and the other by a Japanese company. Intuitive Machines also planned to test a rocket-powered vehicle called a hopper that could explore places not easily reached by rovers.
A parade of lunar landers is expected to continue through the rest of the year.
One of those spacecraft is already in space. The Resilience lander from Ispace of Japan was launched on the same SpaceX Falcon 9 rocket that sent Firefly’s Blue Ghost on its way. But it is taking a longer, more fuel-efficient path to the moon. It will enter orbit around the moon around May 6 and try a landing a month later at Mare Frigoris, or the Sea of Cold, in the moon’s northern hemisphere.
In the fall, Astrobotic Technology of Pittsburgh is planning to try to get to the moon flying a large lander known as Griffin that will carry a commercial rover designed by Venturi Astrolab of Hawthorne, Calif., among other cargo.
The most intriguing lander is the one planned by Blue Origin, the rocket company started by Jeff Bezos. The lander, known as Blue Moon Mark 1, will be the largest spacecraft ever to set down on the moon, even larger than the ones that took NASA astronauts to the moon during the Apollo moon landings more than 50 years ago.
Danielle Kaye contributed reporting.
Business
Stater Bros. lays off dozens of clerks for the first time in 89 years
Stater Bros. Markets has laid off dozens of clerks in its Southern California stores for the first time in its 89-year history, blaming inflation and tariffs for its decision.
“I don’t think it’s any secret that in the last four years, we’ve seen significant inflation, more than I’ve ever seen in my career,” Chief Executive Pete Van Helden said in a video explaining the move to lay off 63 clerks among four Southern California stores, announced Feb. 17.
“With the recent announcements of new tariffs and probably more tariffs to come, it’s quite likely that inflation is going to take off even above the 4.5% we’re seeing now. I’m very worried about that,” he said, referring to recent moves by President Trump to place — and then roll back— tariffs on Canada and Mexico.
Retail prices at the San Bernardino-based grocery chain went up by about 30% in the last four years, Van Helden said, leading customers to choose lower-cost grocery stores like Walmart, Aldi, Target, Sprouts and Dollar Tree.
“The other common thing is that they’re all non-union, and frankly, that’s how they sell their products at a lower price. They pay their teammates less. They pay less benefits and they take that savings and they plow it into pricing,” Van Helden said.
Courtesy clerks at Stater Bros. across their 169 supermarkets bag groceries, help customers to their cars and clean checkout stands, according to the local United Food and Commercial Workers Union chapter that represents them.
“Many courtesy clerks have special needs and are long-term employees with limited employment alternatives,” a Wednesday release from the UFCW 324 chapter said.
“Laying off the lowest paid workers in the stores won’t save Stater Bros. any money, but it’s accomplished one thing — showing workers that their company no longer thinks of them like family,” Andrea Zinder, president of UFCW 324, said in the statement.
About 20 years ago, Van Helden said, 90% of Southern California grocery stores were unionized.
It’s now fallen to 35%, and customers have changed their shopping habits to prefer large, non-union box stores over time.
“The enemy for Stater Bros., the enemy for you, I think, is the non-union competition. That’s who we’re really fighting against,” he said.
Instead of continuing to raise prices to keep up, the company chose to lower the cost of operations through layoffs and other cost-saving measures in a bid to keep prices competitive.
“The intention is to take the cost reduction from those 63 jobs and hold the line on pricing, accept those cost of goods increases and not raise our prices if we can,” Van Helden said.
He signaled that future layoffs were almost a guarantee: “I’m pretty certain that in the future we’re going to have to continue to reduce the number of jobs in this company. It’s a fact.”
About 150 workers and union leaders picketed Wednesday at an affected Costa Mesa Stater Bros. store to protest the layoffs, arguing that the move wasn’t about saving money to protect the chain from going under but to chill ongoing labor contract talks. Bargaining for a new contract with Stater Bros. starts Thursday.
“This action only serves to intimidate union members currently undergoing contract negotiations with the company from demanding what they deserve,” Zinder said in the statement.
A representative for Stater Bros. could not be reached for comment.
Business
Help! I Couldn’t Take My Tall-Ship Voyage, and I Want My Money Back.

Dear Tripped Up,
Last summer, I booked a five-day sailing trip with Tall Ship Experience, a company based in Spain. For 1,350 euros, or $1,450, I would be a volunteer on the crew of the Atlantis, sailing between two ports in Italy. But eight days before, I had a bad fall that resulted in multiple injuries, including eight stitches to my face that doctors said I could not expose to sun or water. The Tall Ship Experience website clearly states that I could cancel for a full refund up to seven days before the trip. But the company revealed it was just an intermediary and the Dutch organization actually running the trip, Tallship Company, had different rules, under which I was refunded 10 percent. I offered to take credit for a future trip, to no avail. Finally, I disputed the charges with my credit card issuer, American Express. But Tall Ship Experience provided a completely different set of terms to Amex, saying I canceled one day in advance. The charges were reinstated. Can you help? Martha, Los Angeles
Dear Martha,
This story reads like a greatest-hits playlist of travel industry traps: a middleman shirking responsibility, terms and conditions run amok, a credit card chargeback gone wrong, and the maddening barriers to pursuing justice against a foreign company. However, the documentation you sent was so complete and the company’s website so confusing that I was sure Tall Ship Experience would quickly refund you.
Tallship Company did not respond to requests for comments, but did nothing wrong. It simply followed its own terms and conditions that Tall Ship Experience, as a middleman, should have made clear to you. When you canceled, Tallship Company sent back a 10 percent refund to Tall Ship Experience to then send to you.
That’s why I was surprised that the stubborn (though exceedingly polite) Tall Ship Experience spokeswoman who responded to me on behalf of the Seville-based organization argued repeatedly that although she regretted your disappointment, Tall Ship Experience was not at fault. At one point she suggested you should have purchased travel insurance, even as the company scrambled to adjust and update its website as we emailed.
Before the changes, the site contained two distinct and contradictory sets of terms and conditions: one for customers who purchased via the website’s English and French versions, and another on the Spanish version. (Confusingly, both documents were in Spanish.)
The English/French version — the one you had seen — promised customers a full refund for trips canceled more than seven days in advance. The Spanish one is vastly more complex, offering distinct cancellation terms for each ship. The Atlantis offered customers in your situation only 10 percent back.
Enter the stubborn spokeswoman: “The terms and conditions in Spanish correctly reflected the cancellation policy of the ship in the moment the client made the reservation,” she wrote via email. “We are conscious that at the time, the English version of the terms was not updated, which may have generated confusion. However, the official terms of the reservation were applied correctly.”
In other words, customers should somehow know to ignore one contract and seek out another on a different part of the site, both in a language they may not read.
But I am no expert in Spanish consumer law, so I got in touch with two people who are: Marta Valls Sierra, head of the consumer rights practice at Marimón Abogados, a law firm based in Barcelona; and Fernando Peña López, a professor at the Universidade da Coruña in A Coruña.
They examined the documentation and each concluded independently that Tall Ship Experience had violated basic Spanish consumer statutes. When I passed along their convincing points to the spokeswoman and alerted her that you were considering taking the company to Spanish small-claims court, she finally said it would refund you the remaining €1,215.
I felt a bit sheepish about exerting so much pressure on this small company — actually, an arm of the nonprofit Nao Victoria Foundation, which operates several replicas of historic ships — but the company should have taken much more care when it set up its website, Ms. Valls Sierra told me.
“If in your terms and conditions you say that up until seven days before departure you have the right to cancel,” she said in an interview, “and a consumer comes and says, ‘I want to cancel,’ you have to cancel their trip and return their money. They can’t use ‘Sorry, we forgot to put it on one web page, but we put it on another web page’ as an excuse.”
It is a principle of consumer law, she added, that confusing or contradictory contracts are interpreted in favor of the consumer.
The other troubling issue with the website is that you had no way of knowing that your trip was not operated by Tall Ship Experience. There was no such mention I could find on the website, which relies on marketing copy like this: “On board you will learn everything you need to know that will allow you to become one of our crew.”
Dr. Peña López, the law professor, wrote me in an email that “Tall Ship Experience is obligated to inform the consumer about the service it provides in an accessible and understandable manner, clearly indicating whether it is an intermediary.” He added that Tall Ship Experience “clearly” presented itself as the ship’s operator in this case.
As I mentioned, Tall Ship Experience did begin updating its site almost as soon as I got in touch, calling itself a “marketplace” for experiences and posting the correct terms and conditions (in the correct languages) on its English and French pages.
But Tall Ship Experience agreed to a refund only after I sent the company a compilation of the two experts’ legal analyses. “We are dedicated to creating experiences aboard unique boats, and not to legal matters,” came the spokeswoman’s response. “Regardless of which party is correct in this case, we would like to refund the full amount. We look forward to putting this to rest and to focus on continuing to improve customer experiences.”
You also said that American Express had let you down, by taking the company’s word over yours when you contested the charge. It is true that the document Tall Ship Experience sent to Amex (which forwarded it to you, who forwarded it to me), is wildly inaccurate, including only the terms favorable to the company and saying you canceled only one day in advance.
A spokeswoman for American Express emailed me a statement saying that the company “takes into account both the card member and the merchant perspectives.” But travelers should not mistake credit card issuers for crack investigators who will leave no stone unturned in pursuit of travel justice. A chargeback request works best when the problem is straightforward — you were charged more than you agreed to pay, or you never agreed to pay at all. Asking your card issuer to do a deep dive into terms and conditions is a much longer shot.
And as we’ve seen before (and might be seeing in this case) such chargeback requests often anger the companies involved to the point that they refuse to deal with you further.
If all else had failed, as I told you before the company gave in, you could have requested a “juicio verbal,” Spain’s version of a small-claims-court proceeding, via videoconference. It would not have been easy, said Dr. Peña López. Cases under €2,000 do not require a lawyer, but they do require you to have a Foreigner Identification Number, to fill out forms in legal Spanish (A.I. might help) and to find an interpreter to be by your side.
When I finally told you — in our 39th email! — you’d get a refund, you told me you had been “almost looking forward to a Spanish small-claims experience.” I admire your spirit, although I suspect it would have been quickly broken by bureaucratic and linguistic barriers.
If you need advice about a best-laid travel plan that went awry, send an email to TrippedUp@nytimes.com.
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