U.S. tariffs against Canada and Mexico are poised to take effect on Tuesday, according to U.S. Commerce Secretary Howard Lutnick. The specifics of these tariffs, including their rates, will ultimately be determined by President Donald Trump.
On March 4, Trump threatened to impose a significant 25% tariff on imports from both neighboring countries, citing concerns over the continued influx of illegal drugs and migrants into the United States. Lutnick confirmed on Sunday that the tariffs are indeed scheduled to proceed, although the final details are subject to ongoing negotiations.
Potential impact on Chinese imports
In addition to the tariffs on Canada and Mexico, a 10% tariff on Chinese imports is also anticipated, as part of U.S. claims that China is not adequately curbing the flow of fentanyl into the country. If implemented, this would result in a total tariff of at least 20% on Chinese goods entering the U.S., following the already established 10% tariff from the previous month.
China’s state media has reported that Chinese leaders are preparing a range of countermeasures to be enacted simultaneously, potentially escalating tensions into a full-scale trade war between the world’s two largest economies. The Global Times, a state-run newspaper, suggested that these countermeasures would likely target American agricultural and food products.
Reactions from Canada and Mexico
Despite ongoing negotiations, analysts believe that China is still seeking to avoid a complete trade conflict and is open to reaching a truce with the Trump administration. However, as of now, there have been no substantial signs of an agreement between the two economic powerhouses.
“There are going to be tariffs on Tuesday on Mexico and Canada. Exactly what they are, we’re going to leave that for the president and his team to negotiate,” said Commerce Secretary Lutnick.
Canada has expressed concern that the tariffs would be detrimental to both economies. Internal Trade Minister Anita Anand, who recently met with U.S. officials in Washington, indicated that Canada is prepared to respond adequately. “We are steady at the wheel. We are prepared for any eventuality, but we will at every turn defend our country’s economy,” she stated in an interview with CBC News.
In anticipation of U.S. tariffs, Canada had previously compiled a list of American goods worth $30 billion (£23.6 billion) that would be subject to retaliatory levies, including everyday items such as pasta, clothing, and perfume.
On the other hand, Canada Border Services Agency (CBSA) has ramped up efforts to combat the trafficking of fentanyl into the U.S., even though U.S. data indicates that only 1% of fentanyl seized in the U.S. originates from Canada. Prime Minister Justin Trudeau, speaking from a summit in Ukraine, emphasized that Canada is “not an issue” regarding the illegal fentanyl problem in the U.S.
Furthermore, Mexico’s President Claudia Sheinbaum conveyed a message to Trump, asserting at a public event in Colima that “Mexico has to be respected.” She emphasized a stance of cooperation without subordination.
In a related move, President Trump has announced a 25% tariff on all steel and aluminum imports, set to take effect on March 12. Additionally, he has threatened to impose custom “reciprocal” tariffs on individual nations as well as a 25% tariff on the European Union.