The United States is set to impose new tariffs on imports from Canada and Mexico starting Tuesday, but the final rate will be determined by President Donald Trump, according to U.S. Commerce Secretary Howard Lutnick.
The proposed 25% tariffs are part of Trump’s response to what he describes as an unacceptable flow of illegal drugs and migrants into the U.S. from its two neighboring countries. While the administration has committed to enforcing the tariffs, Lutnick indicated on Fox News’ Sunday Morning Futures that the final details remain subject to negotiations.
China Also Facing Additional Tariffs
In addition to North American imports, the U.S. is also expected to raise tariffs on Chinese goods, with a new 10% levy targeting Beijing’s exports. If implemented, this would bring the total tariff rate on Chinese imports to at least 20%, following a 10% tariff introduced last month.
The move comes as the U.S. accuses China of failing to do enough to curb the flow of fentanyl, a deadly synthetic opioid, into American communities. The Chinese government has denied these allegations, and state media has reported that Beijing is preparing countermeasures to be enacted on the same day the new U.S. tariffs take effect.
According to the state-run Global Times, China’s retaliatory measures are likely to target U.S. agricultural and food products, raising fears of a full-scale trade war between the world’s two largest economies.
Canada and Mexico Push Back Against Tariffs
Both Canada and Mexico have voiced strong opposition to the looming tariffs.
Canadian Internal Trade Minister Anita Anand, who recently held discussions in Washington, D.C., reaffirmed Canada’s commitment to defending its economic interests.
“We are steady at the wheel. We are prepared for any eventuality, but we will at every turn defend our country’s economy,” Anand told CBC News over the weekend.
In preparation, Canada had already compiled a retaliatory tariff list worth $30 billion in U.S. goods, including pasta, clothing, and perfume.
Prime Minister Justin Trudeau, speaking from a Ukraine summit in London, dismissed U.S. claims that Canada is a major fentanyl source.
“Canada is not an issue when it comes to fentanyl entering the U.S.,” Trudeau stated.
Mexico, meanwhile, has taken a firm stance against the tariffs. President Claudia Sheinbaum addressed the issue during a public event in Colima, emphasizing the need for mutual respect.
“Cooperation and coordination, yes. Subordination, never,” Sheinbaum declared, appearing to send a direct message to the Trump administration.
Trump Expands Tariff Plans to Steel, Aluminum, and the EU
Alongside the tariffs on Canada, Mexico, and China, Trump has also announced a 25% tariff on all steel and aluminum imports, set to take effect on March 12.
The president has further threatened to impose custom “reciprocal” tariffs on specific countries, as well as a 25% tariff on the European Union, escalating tensions with U.S. allies.
While Trump has maintained that tariffs are essential to correct trade imbalances and protect U.S. manufacturing, economic analysts warn that these measures could trigger widespread retaliation, impacting global trade and supply chains.
As negotiations continue, businesses and global leaders will be closely watching how Trump’s tariff policies unfold in the coming weeks.
