The United States will move forward with tariffs on Canada and Mexico starting Tuesday, though the exact rates will be determined by President Donald Trump, according to U.S. Commerce Secretary Howard Lutnick.
Trump has threatened to impose 25% tariffs—essentially taxes on imports—on both neighboring countries on March 4, citing concerns over illegal drug and migrant flows into the U.S. Lutnick confirmed the tariffs would proceed as scheduled, but final details will depend on ongoing negotiations.
Additionally, a 10% tariff on Chinese imports is expected to take effect, as the U.S. accuses Beijing of failing to curb the flow of fentanyl into American markets. If implemented, this would mean Chinese exports to the U.S. would face a total tariff of at least 20%, following a 10% duty imposed last month.
China has signaled it will retaliate, with state-run media indicating that countermeasures will be introduced on the same day. Reports suggest Beijing may target U.S. agricultural and food products, escalating fears of a full-scale trade war between the world’s two largest economies. While analysts believe China still hopes for a diplomatic resolution, no agreement has been reached.
Trump has consistently argued that tariffs are an effective way to address trade imbalances and protect U.S. manufacturing. However, Canada has warned that such measures will harm both economies and has vowed to respond if the tariffs proceed.
Canadian Internal Trade Minister Anita Anand, who recently met with officials in Washington, emphasized that Canada is prepared to defend its interests. “We are steady at the wheel. We are prepared for any eventuality, but we will at every turn defend our country’s economy,” she told CBC News.
Last month, Canada drafted a list of $30 billion (£23.6 billion) worth of American goods it could target with retaliatory tariffs. Items on the list include everyday products such as pasta, clothing, and perfume.
