Trump to implement tariffs on Mexico and Canada starting March 4

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President Donald Trump has revealed plans to impose tariffs on Mexico and Canada on Tuesday next week. He added that he would double the 10% universal tariff on China-imported goods. 

President Donald Trump said he would implement trade tariffs against Mexico and Canada after a month-long delay next week. The president added he would impose an additional 10% tax on China, doubling the universal tariff. 

Trump announces his proposed trade tariffs to go into effect 

In his Thursday announcement, the president announced that illicit drugs such as fentanyl were smuggled into the country at “unacceptable levels.” He added that import tariffs would trigger other countries to act on the trafficking.

Trump commented that he could not allow the trend to continue and harm the USA. He added that unless the trafficking stopped, the proposed tariffs would take effect as scheduled. 

President Trump signed executive orders on February 1 imposing 25% tariffs on imported goods from Canada and Mexico and 10% duties on Canadian energy on the same date. The president said the executive orders were a result of Canada and Mexico’s failure to curb drug trafficking and crime at their respective U.S. borders. 

Trump paused the tariffs two days after Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum pledged to improve their border policing measures. Trump said the proposed tariffs against Canadian goods would be delayed for 30 days, while Mexico’s tariffs would be delayed by a month.

The president added that during the delay, his administration would hold talks with the Mexican government and pursue a final economic deal with Canada. Canada’s industry minister, Francois-Philippe Champagne, revealed on Wednesday that the country was working hard to stop fentanyl from flowing into the United States. He added that the countries were working together to curb illegal immigration at the border. The minister noted that Canada was prepared to do its part, which was well understood in Washington.

On Wednesday, Trump threatened new tariffs on the European Union. He said in a cabinet meeting that they had decided to impose a 25% trade tariff on imported goods from the region. The president’s remarks came after he said the European Union should contribute more money towards resolving the Ukraine war.  Trump said the EU had taken advantage of the USA, saying the region did not accept goods and products from his country. 

Trump says reciprocal tariffs to take effect as scheduled 

In his first month in office, Trump also imposed a 10% tariff on China’s imported goods and planned to impose reciprocal tariffs on American trading partners.

Trump revealed in a press conference at the Oval Office that under the reciprocal tariffs plan, his administration would treat countries’ tariff policies as unfair trade practices that require tariffs in response.  

The president noted that the reciprocal tariffs would not be implemented immediately. He said that Howard Lutnick, his Commerce Secretary nominee, would study and determine the appropriate tariff levels for each affected country. 

Lutnick expected the evaluation to be complete by April 1, when the tariffs would go into effect. China responded to the tariffs and imposed targeted tariffs on U.S. imports, signaling a trade war between the two states. Beijing imposed a 15% tariff on U.S. imports of coal and liquified natural gas. The state also imposed an additional 10% tariff on crude oil, certain vehicles, and agricultural machinery. 

According to a poll released this week, more Americans opposed the Canada and Mexico tariffs than those who supported them. James Frayne, founding partner at Public First, commented that Americans did not know what to expect from the tariffs. He added that they were not an economic tool and were used in recent times. 

Steve Cohen, chairman and CEO of hedge fund Point72, expressed that Trump’s trade policies could lead to inflationary pressures and lower consumer spending. The CEO added that the president’s stance on immigration could strain labor and have unprecedented effects. 

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