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Trump: New US tariffs against Canada, Mexico and China take effect on March 4
New US tariffs on goods from Canada, Mexico, and China go into effect on March 4th. Stay informed on the potential economic impacts and trade implications.
US President Donald Trump announced that 25% tariffs on imports from Canada and Mexico would take effect on March 4. He also said that an additional 10% tariff on imports from China would also take effect on the same date.
Trump, who had previously delayed the implementation of the tariffs by a month, wrote on social media:
Drugs continue to enter our country at an unacceptable and very high level from our North American neighbors. We cannot allow this harm to continue to be done to the United States.
The new tariffs on China are in addition to the previous 10 percent tariff that went into effect earlier this month. The 25 percent tariffs will apply to all imports from Canada and Mexico, except energy products from Canada, which will be taxed at a 10 percent rate.
Trump said at the White House:
I think you’re going to see a real stop to drugs, because countries shouldn’t be allowing drugs to come into the United States. We’re not going to let that happen.
When asked if he was satisfied with the progress of the negotiations at the White House, Trump replied:
Not at all!
Trump’s aggressive move puts North America on the brink of a trade war. Economists say it would hurt U.S. growth, worsen inflation and potentially trigger a recession in Mexico and Canada, the three biggest sellers of U.S. goods, along with China.
Trump’s new tariff threat rattled financial markets. The U.S. dollar rose on Thursday, sending the Canadian dollar, Mexican peso and Chinese offshore yuan lower. The S&P 500 index also fell 1.6 percent.
Canadian Prime Minister Justin Trudeau warned that his country would respond “swiftly and forcefully” if unfair tariffs were imposed on Canada. Canada has approved a $901 million plan to increase border patrol resources with the United States.
Mexico has also agreed to send 10,000 National Guard troops to the border to help stem the flow of fentanyl and migrants. Mexican President Claudia Sheinbaum said she would speak to Trump if necessary.
Trump is disappointed with the results of Canada-Mexico border security efforts and believes most of the progress has come from the US, according to a White House official.
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