US Tariffs on Canada and Mexico Set to Take Effect Amid Rising Tensions

With tariffs looming, Canada and Mexico brace for economic impacts as discussions continue on trade relations with the US.

US tariffs targeting Canada and Mexico are scheduled to commence on Tuesday, Commerce Secretary Howard Lutnick confirmed amid negotiations about their specific levels. President Donald Trump previously indicated a possible imposition of 25% tariffs, citing concerns over illegal drug and migrant flows across borders.

During an interview on Sunday, Lutnick emphasized that while the tariffs will be implemented as planned, their specific details will be finalized by Trump’s team. Moreover, a concurrent 10% tariff on Chinese imports is on the table due to claims that China has not done enough to curb the fentanyl influx into the United States.

Should these tariffs be enacted, Chinese goods entering the US would face a cumulative rate of at least 20%, following the initial 10% tariff introduced recently. In response, Chinese state media revealed that Beijing is poised to enact countermeasures targeting US agricultural and food products, signaling the potential for an escalating trade conflict between the two powerhouses. Despite this, analysts note that China is still exploring diplomatic avenues to prevent an outright trade war.

Trump has consistently advocated for tariffs as a mechanism to rectify trade imbalances and bolster US manufacturing. In a broadcast interview on Fox News, Lutnick reiterated the certainty of tariffs being applied to Canada and Mexico, adding that the particulars would ultimately hinge on further negotiations.

In the face of impending tariffs, Canadian officials have voiced concerns about the detrimental impact on both economies but are adamant about protecting their interests. Canadian Internal Trade Minister Anita Anand stated that they are ready to respond decisively if tariffs are imposed. Canada has already proposed a counter-list of $30 billion in American goods subject to tariffs, which could include various everyday products.

The Canadian Border Services Agency has ramped up its efforts to combat fentanyl trafficking, yet US data indicates that only a small fraction of fentanyl seized originates from Canada. Prime Minister Justin Trudeau, while attending a summit in London, remarked that Canada does not significantly contribute as a source of illegal fentanyl.

Mexican President Claudia Sheinbaum also responded to the looming tariffs, insisting on the need for mutual respect in dealings with the US, stating firmly that cooperation should not entail subordination.

Moreover, Trump plans to impose a 25% charge on steel and aluminum imports effective March 12, along with the possibility of custom reciprocal tariffs on different nations. The escalation has left many questioning the overall fairness of US trade policies under Trump's administration.