President Donald Trump said that clearing 25% tariffs in Mexico and Canada would come into effect tomorrow, and appears to end weeks of speculation about whether the action could be avoided.
Monday’s announcement comes shortly after Trump administration officials suggested that Trump could impose tariff levels lower than previously threatened. But speaking to a White House reporter, Trump seemed determined by following at a higher rate.
“Tomorrow – 25% tariffs in Canada and 25% in Mexico. And that’s going to start,” Trump said.
When asked if there was room for negotiation, the US President replied: All customs duties are set. They will be enacted tomorrow. ”
Trump said he would add another 10% tariffs to goods from China, in addition to the first 10% he introduced last month.
The US President has pledged for weeks to impose a 25% tariff on all imports from Canada and Mexico, imposing 10% on Canadian energy. He framed the threat as part of a pressure campaign to force more countries to both countries to disrupt migration and drug trafficking.
Trump initially planned to impose tariffs in early February, but delayed the move after the two countries agreed to take certain measures on border control.
Speaking at a press conference on Sunday, early Monday, Mexico’s Mexican president, President Claudia Sheinbaum, said Mexico was keen to eat up tariffs but was ready to respond in every direction Trump took.
“Whatever his decision is, we have a decision, we have a plan, and there is unity in Mexico,” Sinbaum said.
Meanwhile, Canadian Foreign Minister Melanie Jolly told reporters that the government is ready to respond with retaliation measures.
She reiterated Ottawa’s position that Canada’s measures against US imports could total $100 billion.
Last month, Canadian officials had developed plans to target imports produced at Trump’s Republican base before tariffs were first avoided. It was not clear whether we would take a similar approach this time.
CEOs and economists will warn tariffs covering more than $900 million annual US imports from their southern and northern neighbors, and will deal with a serious setback to a highly integrated North American economy.
Speaking on Sunday, Commerce Secretary Howard Lutnick signaled that Trump may not be imposing any customs duties.
He told Fox News that Mexico and Canada “do a reasonable job” to secure a US border, and that Trump is considering what the ultimate tariff levels should be.
“He’s thinking right now exactly how he wants to play with Mexico and Canada. It’s a fluid situation,” he said at the time. “We’re set to have tariffs in Mexico and Canada on Tuesday. What exactly are they, we’re going to leave it for the president and his team to negotiate.”
“The path he chose”
Trump has pledged much to restructure almost all trade ties since taking office, claiming that the United States is being unfairly treated in consensus signs around the world.
It sparked the fear of overlapping trade wars that could disrupt the global economy.
But Trump’s emphasis on Mexico and Canada was particularly surprising given the deeply intertwined nature of the industry and economy of the three countries.
In response to the threat, both Mexico and Canada announced a series of initiatives last month to meet Trump’s demands related to migration and drug trafficking.
That includes Mexico sending 10,000 National Guard troops to its shared border with the United States. Last week, Mexico handed over 29 drug cartel members to the United States.
Among other measures, Canada has appointed the so-called “Emperor Fentanyl” despite seizing less than 20kg (44 pounds) of opioids smuggled from Canada from October 2023 to September 2024.
High-ranking Canadian and Mexican officials also met with Trump ministers on Friday to discuss their reactions.
But on Monday, Trump adviser Peter Navarro said despite concerns about the domestic economic blow, Trump is unlikely to abandon his threat.
“This is the path he chose,” he told CNBC.
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