The United States has decided to lift its month-long pause on tariffs for Canada and Mexico, signaling an end to any further delays in imposing the duties.
Effective immediately, imports from both countries will now face a 25% tariff, in accordance with amendments made to President Donald Trump’s executive orders from the previous month. Additionally, Canadian energy products will be subject to a 10% tariff, as outlined in the orders.
The initial implementation date for the tariffs on Canada and Mexico was set for February 4 following executive orders issued by Trump. However, the U.S. postponed the duties by approximately a month after reaching temporary agreements with Mexico and Canada.
These agreements were focused on addressing issues related to migration into the U.S. and fentanyl trafficking. Despite significant efforts made by both Mexico and Canada, Secretary of Commerce Howard Lutnick stated that they needed to further demonstrate their commitment to resolving these issues in order to receive another pause, as reported in recent news.
However, a White House notice published on Monday declared that both countries had failed to adequately address the concerns, leading to the decision to proceed with the tariffs.
In response to the new tariffs, Canada announced retaliatory measures by imposing a 25% tariff on $155 billion worth of U.S. goods, with $30 billion of tariffs taking effect immediately and the remaining $125 billion to follow in 21 days, according to a statement by Prime Minister Justin Trudeau.
On the other hand, Mexico is set to announce its own countermeasures, including tariff and non-tariff actions, as President Claudia Sheinbaum mentioned in a press conference on Tuesday. She emphasized the importance of mutual respect between Mexico and the U.S. and highlighted the need for cooperation rather than interventionism.
Meanwhile, President Trump has decided to increase tariffs on China by 10%, building upon previous tariff actions. The move is a response to China’s alleged lack of cooperation in addressing the importation of fentanyl, leading to heightened tensions between the two countries.
China, in turn, has announced retaliatory measures against the U.S. by imposing additional tariffs on a range of agricultural imports starting March 10, according to an official announcement from the country’s Ministry of Finance.
These escalating trade tensions follow previous actions taken by both countries, including China’s imposition of tariffs on certain U.S. imports in response to earlier U.S. tariff measures.
As trade disputes continue to unfold, the global economic landscape remains uncertain, with potential implications for various industries and markets.