(ABC 6 News) – President Donald Trump announced he will implement 25% tariffs on Mexico and Canada and a 10% tariff on China starting Saturday, February 1.

The tariffs will have major impacts on Americans, especially Minnesotans, whose biggest trade partner is Canada, followed by Mexico.

Trump says these tariffs stem from demands for Mexico and Canada to take stronger action at the border to stop the flow of illegal immigration.

“Number one is the people that have poured into our country so horribly and so much. Number two are the drugs, fentanyl and everything else, that have come into the country. And number three are the massive subsidies that we’re giving to Canada and to Mexico in the form of deficits,” said Trump.

Economists say the tariffs will raise prices for Americans across multiple industries.

“If he actually puts on tariffs, you’re going to get a price impact. We calculate 1.2% increase in average prices,” said Gary Hufbauer from the Peterson Institute for International Economics. “And there’ll be price spikes, in particular, goods, like the autos I mentioned. I should have mentioned also fruits and vegetables.”

Trump argues these tariffs are necessary following trade deficits between the countries and the U.S. While they are set to start at 25%, Trump warns the tariffs could get even higher.

“Mexico and Canada have never been good to us on trade. They’ve treated us very unfairly on trade, and we will be able to make that up very quickly because we don’t need the products that they have,” said Trump.

It’s unclear if oil will be exempt, as Trump gave mixed messages to reporters at the Oval Office on Friday.

“Oil is going to have nothing to do with it, as far as I’m concerned, oil has nothing to do with it,” said Trump. However, when a reporter asked “no oil tariffs?” to clarify, Trump responded, “Well, I didn’t say that, you said that. No, we may or may not.”

If there is no exception for oil, that’s likely to have the biggest impact on Minnesotans.

“If you’re a Minnesotan, you’re not really using crude oil from the middle east, why ship it that far to us? You’re using crude oil from North Dakota or Canada,” said John Spry, a Finance Professor at the University of St. Thomas.

Experts say oil tariffs could rise the price of gas between 40-70 cents per gallon.

“It is extremely rare that crude oil prices to up and pump prices do not follow suit,” said Nick Jarmusz, Director of Public Affairs with AAA Wisconsin.

Since Minnesota exports a fair amount of crops to both Canada and Mexico, farmers worry a high tariff could trigger a trade war.

“Basically, we’re both paying more for goods we shouldn’t have to, because of a tariff. That’s passed on to the people who buy the products, who consume the goods,” said farmer Ted Winter.

On top of higher prices Americans are likely to see from these tariffs, economists warn if Canada and Mexico choose to retaliate with tariffs of their own, it could lead to unemployment in U.S. firms that export to those countries.