US Commerce Secretary Howard Lutnick confirmed on Sunday, March 2 that tariffs on Canada and Mexico will take effect on Tuesday, March 4 as previously announced by President Donald Trump.
The exact level of the tariffs, which could reach up to 25%, will be determined by the president based on ongoing negotiations. The tariffs are a response to what Trump describes as an unacceptable flow of illegal drugs and migrants into the US.
How Tariffs on China Are Expected to Increase
In addition to the tariffs on Canada and Mexico, the US is expected to implement a 10% tariff on Chinese imports. This follows a previous 10% tariff imposed a month ago, bringing the total levy on Chinese exports to the US to at least 20%. The move is part of the Trump administration’s efforts to pressure Beijing to address the flow of fentanyl into the US.
In reaction, the Chinese state media reported that Beijing is preparing a series of countermeasures to coincide with the US tariffs, targeting US agricultural and food products. While analysts believe China hopes to avoid an all-out trade war, there has been no sign of a truce between the two economic giants. The Global Times, a state-run newspaper, emphasized that China is ready to respond if the US proceeds with its tariff plans.
Canada and Mexico’s Response to US Tariff Threats
Canada has repeatedly warned that US tariffs will harm both economies but has vowed to defend itself if the measures are implemented. Canadian Internal Trade Minister Anita Anand stated that Canada is prepared for any eventuality and will protect its economy. Last month, Canada prepared a list of $30 billion worth of American goods, including everyday items like pasta, clothing, and perfume, that could be targeted in retaliation.
Mexican President Claudia Sheinbaum also responded to the tariff threats, asserting that Mexico “has to be respected” and emphasizing cooperation over subordination.
Broader Implications of US Tariff Policy
President Trump has long argued that tariffs were a necessary tool to correct trade imbalances and protect US manufacturing. In addition to the tariffs on Canada, Mexico, and China, Trump has announced a 25% charge on all steel and aluminium imports, set to take effect on March 12. He has also threatened “reciprocal” tariffs on individual countries and a 25% levy on the European Union.
The US has justified its tariffs on Canada and Mexico by citing concerns over the flow of fentanyl and illegal migrants. However, Canadian Prime Minister Justin Trudeau has stated that Canada is “not an issue” as a source of illegal fentanyl, with only 1% of seized fentanyl in the US originating from Canada. The Canada Border Services Agency (CBSA) has intensified efforts to address the issue, but the dispute highlights the complexities of cross-border security and trade relations.
