US Tariffs on Canada and Mexico Set to Launch Amid Growing Trade Tensions

As tensions rise, US tariffs on Mexico and Canada are scheduled to take effect on Tuesday, with President Trump considering a hefty 25% levy amid concerns about drug trafficking. Both neighboring nations vow to defend their economies, and potential countermeasures from China are also a concern.

US tariffs against Canada and Mexico are poised to be enacted this Tuesday, according to US Commerce Secretary Howard Lutnick. The tariffs, driven by President Donald Trump's assertion of an "unacceptable flow" of illegal drugs and migrants from these neighbors, could reach as high as 25%. The precise details regarding the implementation will be subject to ongoing negotiations.

In addition to the tariffs imposed on its North American neighbors, the US administration plans to impose a 10% tariff on Chinese goods, which could total a 20% charge when combined with a previous tariff established last month. This response is largely attributed to accusations that China is not sufficiently addressing the fentanyl crisis impacting the US.

Chinese media reports indicate that Chinese leadership is preparing retaliatory measures to coincide with the U.S. tariffs, potentially sparking an all-out trade dispute. Targeted sectors may include American agricultural products as Beijing appears open to negotiations but faces mounting pressure to respond.

In a recent appearance on Fox News, Secretary Lutnick declared, “Tariffs on Tuesday are going to be implemented against Mexico and Canada. The exact figures remain for the President and his team to finalize.” Facing the impending tariffs, Canadian officials, including Internal Trade Minister Anita Anand, have expressed their intent to protect their economy, hinting at a strong response prepared in advance.

Reportedly, Canada has formulated a list of $30 billion worth of U.S. goods potentially subject to counter-tariffs, ranging from everyday consumer products to industrial goods. Canadian authorities also assert they are increasing their vigilance against fentanyl trafficking, though they note that only 1% of the fentanyl seized in the U.S. originates from Canada.

Prime Minister Justin Trudeau stated from a summit in London that Canada should not be considered a significant source of illegal fentanyl entering the United States. Meanwhile, President Trump revealed plans for a 25% tariff on steel and aluminum imported into the U.S., with implementation slated for March 12.

The backdrop of these developments includes Trump's broader strategy of utilizing tariffs as a means to correct perceived trade imbalances, which has raised numerous questions and concerns among international trade partners.