The tariffs, potentially as high as 25%, signal a strong stance from the U.S. against both neighbors, with Canada and Mexico preparing for retaliation.
US Tariffs Set to Impact Canada and Mexico Next Week, Commerce Secretary Confirms
US Tariffs Set to Impact Canada and Mexico Next Week, Commerce Secretary Confirms
Commerce Secretary Howard Lutnick announces tariffs in response to illegal drug and migrant flows.
In a significant trade development, U.S. Commerce Secretary Howard Lutnick has confirmed that tariffs against Canada and Mexico will take effect on Tuesday, although the specific rates are yet to be finalized by President Donald Trump. With Trump threatening a 25% tariff on imports from both neighboring countries on March 4, the decision stems from ongoing concerns regarding the illegal influx of drugs and migrants.
Lutnick stated on Sunday that these tariffs are set to move forward but emphasized that the final details remain contingent on ongoing negotiations. Additionally, a corresponding 10% tariff on Chinese imports is anticipated, further escalating tensions between the U.S. and China over the flow of fentanyl.
Chinese state media reports indicate that Beijing has prepared countermeasures targeting U.S. agricultural products, heightening fears of a comprehensive trade conflict between the world’s largest economies. Despite the tensions, analysts suggest that China remains interested in finding a resolution to avoid a trade war, though no agreements have materialized thus far.
Trump has historically viewed tariffs as effective measures to remedy trade imbalances and shield U.S. manufacturing. In a recent appearance on Fox News, Lutnick reiterated the administration's intentions. Canadian officials have responded cautiously, with Internal Trade Minister Anita Anand asserting that Canada will defend its economy against potential tariffs. Canada has already outlined a potential $30 billion retaliation list targeting U.S. goods, including staple items such as pasta and clothing.
The Canada Border Services Agency (CBSA) has been intensifying efforts to curb fentanyl trafficking, although U.S. data suggests that only about 1% of the substance seized is believed to originate from Canada. Prime Minister Justin Trudeau, attending a summit in London, reiterated that Canada is not a significant source of illegal fentanyl entering the U.S.
Further complicating matters, Trump intends to implement a 25% tariff on steel and aluminum imports starting March 12, in addition to considering "reciprocal" tariffs on various countries, including a hefty 25% on the European Union.
