The US plans to impose tariffs on Canada and Mexico starting Tuesday, potentially escalating tensions amidst negotiations. Both countries express readiness to respond, while Trump asserts tariffs aim to address trade imbalances and illegal drug inflow.
US Tariffs on Canada and Mexico Set to Take Effect Amidst Growing Trade Tensions
US Tariffs on Canada and Mexico Set to Take Effect Amidst Growing Trade Tensions
Commerce Secretary confirms impending tariffs as Trump administration negotiates details, raising concerns of retaliatory measures from northern neighbors.
US tariff implementations against Canada and Mexico are imminent, with the US Commerce Secretary, Howard Lutnick, confirming that the measures will activate on Tuesday. The actual tariff levels, however, remain uncertain and dependent on ongoing negotiations spearheaded by President Donald Trump. The proposed tariffs, which could rise to as high as 25%, are positioned as a response to what Trump has characterized as an excessive flow of illegal drugs and migrants into the United States.
In addition, a looming 10% tariff on Chinese imports is expected, contributing to an overall 20% levy post the recent implementation. This measure comes as the US accuses China of insufficient actions to curb the fentanyl crisis impacting the country. Amidst these developments, Chinese state media has reported that Beijing plans countermeasures targeting US agricultural and food products, amplifying fears of a comprehensive trade war between the two largest economies.
Secretary Lutnick reiterated on Fox News that the tariffs set for Tuesday are proceeding as scheduled, but specifics will depend on the president's discussions. Canada has voiced strong objections, asserting that such tariffs would have adverse effects on both economies, but remains vigilant to defend its interests should they materialize. In preparation, Canada has outlined a potential $30 billion retaliation list targeting a variety of American goods.
Amidst these trade disputes, the Canadian Prime Minister, Justin Trudeau, emphasized that Canada is not a significant supplier of illicit fentanyl to the US, stating that only 1% of fentanyl seized in the US originates from Canada according to US data. Concurrently, President Trump has announced additional tariffs on steel and aluminum imports, slated for March 12, along with proposals for "reciprocal" tariffs targeting individual countries, increasing the complexity of international trade relations at a critical time.
