As the deadline for new tariffs approaches, U.S. Treasury Secretary Scott Bessent has called on Canada and Mexico to impose matching tariffs on Chinese imports. The urgency stems from a looming Tuesday deadline, which would see a 25% tariff on Canadian and Mexican goods if they do not align with U.S. trade policies. This initiative seeks to combat the influx of Chinese imports, which Bessent describes as coming from "the most unbalanced economy in the history of modern times."
The context for these tariffs is intensifying due to rising concerns over fentanyl trafficking and its devastating toll in the United States. In 2023 alone, the U.S. recorded 72,776 deaths attributed to synthetic opioids, primarily fentanyl. The Trump administration has warned that insufficient progress in curbing these overdose deaths has led to the planned duties on more than $900 billion worth of annual imports from Canada and Mexico.
Mexico has signaled its willingness to comply with U.S. requests, with Deputy Economy Minister Vidal Llerenas indicating that the nation could consider additional trade measures beyond tariffs to address low-value shipments from China. Meanwhile, Canadian Public Safety Minister David McGuinty stated that Canada is acting swiftly to enhance border security and communicate improvements to U.S. officials.
China has responded vehemently to the proposed tariffs, asserting that unilateral actions undermine World Trade Organization (WTO) rules. The Chinese embassy in Washington emphasized that such tariff hikes would represent a severe violation of global trade agreements. Liu Pengyu, a spokesperson for the embassy, criticized the U.S. approach, asserting that "pressuring, coercion and threat is not the right way to deal with China. Instead, mutual respect is the basic prerequisite."
Despite these international tensions, Bessent remains hopeful about cooperation among North American nations. He stated, "I think it would be a nice gesture if the Canadians did it also," suggesting that a unified front could create a "fortress North America" against Chinese imports.
The backdrop of this trade dispute includes the recent mass extradition of suspected drug cartel members by Mexico, marking its largest operation in a decade. At the same time, Rafael Caro Quintero, a notorious drug kingpin, has pleaded not guilty to U.S. drug trafficking charges.
Earlier this month, the U.S. also moved to suspend the "de minimis" duty-free exemption for low-value packages valued at less than $800. This decision reflects a broader strategy by the Trump administration to adopt a harder stance on trade with China, despite previous indications of backing down from a proposed 60% tariff shortly after Trump took office.
As the Tuesday deadline nears, the pressure mounts on Canada and Mexico to respond to U.S. demands. McGuinty highlighted Canada's efforts by stating, "We've made some very serious adjustments, investments, improvements on the border," during discussions with U.S. counterparts.