The United States is set to impose tariffs on Canada and Mexico starting Tuesday, as announced by US Commerce Secretary Howard Lutnick. President Donald Trump will determine the exact levels of these tariffs. Meanwhile, a 10% tariff on Chinese imports is expected to take effect, following US accusations that Beijing has not done enough to curb the flow of fentanyl into the United States. In response to this new tariff, Chinese exports to the US may face a levy of at least 20%.
The proposed tariff on Chinese imports is in addition to another 10% tariff that was implemented a month ago. The escalation in tariffs comes amid rising tensions between the US and China. According to Chinese state media, leaders in Beijing have prepared a set of countermeasures targeting US agricultural and food products, raising concerns about a potential trade war between the two economic giants.
Canada, however, is not considered a significant source of illegal fentanyl entering the US. Canadian Prime Minister Justin Trudeau emphasized this point by stating that Canada is "not an issue" in the context of fentanyl trafficking. US data suggests that only 1% of fentanyl seized in the US originates from Canada. Additionally, the Canada Border Services Agency has increased its efforts to prevent fentanyl from crossing into the United States.
In terms of tariffs on Canada and Mexico, Secretary Lutnick confirmed their implementation but noted that details are subject to ongoing negotiations.
"There are going to be tariffs on Tuesday on Mexico and Canada. Exactly what they are, we're going to leave that for the president and his team to negotiate." – Lutnick
President Trump has already threatened to impose 25% tariffs on steel and aluminum imports from Canada and Mexico. In anticipation of these tariffs, Canada has prepared a list of $30 billion worth of American goods that it plans to target in retaliation. Similarly, Mexico's President Claudia Sheinbaum sent a strong message at a public event in Colima, stating that "Mexico has to be respected."
Furthermore, Trump has announced a 25% charge on all steel and aluminum imports, effective March 12. This move may exacerbate trade tensions with China, as their state-run Global Times newspaper reported that countermeasures are likely to coincide with this date.