The tariffs, which could go as high as 25%, are part of President Trump's ongoing strategy to address what he perceives as trade imbalances and illegal imports.
US to Impose New Tariffs on Canada and Mexico Starting Tuesday
US to Impose New Tariffs on Canada and Mexico Starting Tuesday
Commerce Secretary Confirms Tariffs as Tensions Rise with Neighbors and China
US Commerce Secretary Howard Lutnick has announced that new tariffs on imports from Canada and Mexico will officially take effect on Tuesday, with the exact rates to be finalized by President Donald Trump. The tariffs are set as a response to the perceived influx of illegal drugs and migrants from both countries. A significant price increase of 25% has been threatened on those imports as part of this measure.
On the same day, a contentious 10% tariff on Chinese imports is expected to be implemented, arising from US claims that China is not doing enough to curb the flow of fentanyl—a potent opioid—into the US. This could further intensify trade tensions, as current tariffs combined may impose a total of at least 20% on Chinese exports following previous tariff actions.
In China, state media reports indicate that the country is preparing countermeasures targeting US agricultural and food products, which could usher in a new phase of economic conflict between the two leading global economies. While analysts suggest that Beijing seeks to avoid a full-scale trade war, negotiations to counter Trump’s tariffs have yet to progress significantly.
Secretary Lutnick confirmed the imminent tariffs in an interview, but deferred further specifics to the president’s negotiations team. Canadian officials have responded to this development by acknowledging potential harms to both nations’ economies while emphasizing readiness to protect their market interests. Internal Trade Minister Anita Anand noted Canada has a plan to levy tariffs worth $30 billion on a range of US goods if the taxes are enacted.
Despite claims from Trump that Canada is not significantly responsible for fentanyl trafficking, the Canadian government has ramped up efforts to crack down on the substance flowing into the US. Prime Minister Justin Trudeau reiterated that Canada does not contribute notably to the US's illegal fentanyl problem during a recent summit.
Mexican President Claudia Sheinbaum has also voiced her country’s position, affirming that respect and cooperation should be the foundation of US-Mexico relations. Meanwhile, Trump continues to emphasize tariffs as a necessary tool for economic correction and has plans for further actions that may affect European imports and others if trade imbalances are not rectified.
On the same day, a contentious 10% tariff on Chinese imports is expected to be implemented, arising from US claims that China is not doing enough to curb the flow of fentanyl—a potent opioid—into the US. This could further intensify trade tensions, as current tariffs combined may impose a total of at least 20% on Chinese exports following previous tariff actions.
In China, state media reports indicate that the country is preparing countermeasures targeting US agricultural and food products, which could usher in a new phase of economic conflict between the two leading global economies. While analysts suggest that Beijing seeks to avoid a full-scale trade war, negotiations to counter Trump’s tariffs have yet to progress significantly.
Secretary Lutnick confirmed the imminent tariffs in an interview, but deferred further specifics to the president’s negotiations team. Canadian officials have responded to this development by acknowledging potential harms to both nations’ economies while emphasizing readiness to protect their market interests. Internal Trade Minister Anita Anand noted Canada has a plan to levy tariffs worth $30 billion on a range of US goods if the taxes are enacted.
Despite claims from Trump that Canada is not significantly responsible for fentanyl trafficking, the Canadian government has ramped up efforts to crack down on the substance flowing into the US. Prime Minister Justin Trudeau reiterated that Canada does not contribute notably to the US's illegal fentanyl problem during a recent summit.
Mexican President Claudia Sheinbaum has also voiced her country’s position, affirming that respect and cooperation should be the foundation of US-Mexico relations. Meanwhile, Trump continues to emphasize tariffs as a necessary tool for economic correction and has plans for further actions that may affect European imports and others if trade imbalances are not rectified.
