The United States will impose 25% tariffs on imports from Canada and Mexico starting Tuesday, as announced by President Donald Trump during a recent CNN interview. This decisive move marks the end of a temporary postponement that began on February 3, when both neighboring countries pledged to address issues at their borders. Alongside these measures, a 10% tariff on Chinese imports will also take effect on the same day.
President Trump officially signed an executive order on February 1, imposing the 25% tariffs on Mexico and many Canadian imports. However, following the engagement of Canada and Mexico to tackle border-related concerns, the tariffs were deferred. Despite this, Trump expressed dissatisfaction, citing continued high levels of illicit drugs entering the U.S. from these countries.
"They're all set. They go into effect tomorrow."
— President Donald Trump
The President spoke at the White House on Monday afternoon, emphasizing that the time for negotiations with Canada and Mexico had run out. He stated there was no remaining room for further discussions with these U.S. allies. In response to Trump's comments, stock markets experienced further declines, reflecting investor unease over the escalating trade tensions.
Commerce Secretary Howard Lutnick acknowledged that President Trump might consider softening his tariff demands. Yet, he also pointed out existing concerns regarding fentanyl trafficking, urging observers to see how the President would address these issues.
"They haven't done enough on fentanyl. Let's see how the president weighs that today,"
— Commerce Secretary Howard Lutnick
The tariffs, initially paused due to commitments from Canada and Mexico to enhance border management, will now be implemented as planned. These measures are part of a broader U.S. strategy to curb illegal activities and protect domestic industries.