The United States is set to impose tariffs on imports from Canada and Mexico starting Tuesday, with President Donald Trump expected to determine their exact levels, according to US Commerce Secretary Howard Lutnick. The move is part of the administration’s response to what it describes as an unacceptable flow of illegal drugs and migrants into the US.
Tariffs and Their Expected Impact
Trump has repeatedly warned of imposing tariffs of up to 25% on goods from Canada and Mexico, arguing that these measures are necessary to address trade imbalances and safeguard American industries. Speaking on Fox News’ Sunday Morning Futures, Lutnick confirmed that the tariffs would proceed as planned but left room for adjustments based on negotiations.
A separate 10% tariff on Chinese imports is also expected to take effect. This levy follows the US government’s accusations that China has not done enough to curb the flow of fentanyl into the United States. With a 10% tariff already implemented on Chinese goods last month, total levies on Chinese exports could rise to at least 20% if the new measures are enforced.
Potential Trade War with China
China has signaled its readiness to retaliate with a series of countermeasures, which could be enacted on the same day the US tariffs go into effect. According to China’s state-run Global Times newspaper, these countermeasures are expected to target US agricultural and food products, potentially escalating tensions between the world’s two largest economies.
Despite the growing trade hostilities, analysts believe that Beijing is still open to negotiating a resolution with the Trump administration. However, as of now, no formal agreements have been reached.
Canada and Mexico’s Response
Canada has strongly opposed the tariffs, arguing that they will harm both countries’ economies. Canadian Internal Trade Minister Anita Anand recently met with US officials in Washington, reiterating Canada’s stance that it will take necessary actions to protect its economic interests. She stated, “We are steady at the wheel. We are prepared for any eventuality, but we will at every turn defend our country’s economy.”
Last month, Canada compiled a list of US goods worth $30 billion that it plans to target with retaliatory tariffs. The list includes consumer products such as pasta, clothing, and perfume. Additionally, the Canada Border Services Agency (CBSA) has ramped up efforts to curb fentanyl trafficking, a concern cited by the Trump administration in justifying the tariffs. US data suggests that only about 1% of fentanyl seized in the country originates from Canada.
From a Ukraine summit in London, Canadian Prime Minister Justin Trudeau defended his country, stating, “Canada is not an issue when it comes to the source of illegal fentanyl in the US.”
Meanwhile, Mexico has also voiced its opposition to the tariffs. President Claudia Sheinbaum, speaking at an event in Colima, emphasized Mexico’s sovereignty, saying, “Co-operation and co-ordination, yes, subordination, never.”
Additional Trade Measures
In addition to the tariffs on Canada, Mexico, and China, Trump has announced a 25% charge on all steel and aluminum imports, set to take effect on March 12. This move follows his broader strategy of using tariffs as a tool to enforce trade fairness and protect American manufacturing industries. The president has also hinted at imposing reciprocal tariffs on individual countries, as well as a 25% tariff on European Union goods.
