US President, Donald Trump’s tariffs on Mexico and Canada have come into force.
Trump’s blanket 25% tariffs on Mexico and Canada took effect on Tuesday, March 4, 2025.
Trump also doubled the tariff on all Chinese imports to 20% from last month’s 10%. Those duties sit atop existing tariffs on hundreds of billions in Chinese goods.
A statement released by the White House shortly before the tariffs took effect noted, “While President Trump gave both Canada and Mexico ample opportunity to curb the dangerous cartel activity and influx of lethal drugs flowing into our country, they have failed to adequately address the situation.”
The tariffs come at a time when inflation remains problematic. Americans, and the US economy as a whole, are on shakier ground, as evidenced by recent data.
The tariffs threaten to raise the prices Americans pay for a wide array of goods that are imported from the three nations, which collectively shipped $1.4 trillion worth of goods to the US last year, according to Commerce Department data.
That accounts for more than 40% of the value of all goods the US imported last year.
The only goods that won’t face a 25% tariff from Canada are energy-related items such as crude oil, one of the top goods the US imports from there. Instead, they’ll face a 10% tariff.
Fresh produce, cars and car parts and electronics, including phones and computers, are among the top goods the US imports from Mexico, Canada and China that will now face tariffs between 20% and 25%.
Since winning November’s presidential election, Trump has focused on China, Canada and Mexico, threatening the three markets with steep duties on their exports unless they reduced the “unacceptable” levels of illegal drugs crossing into the US.
While he slapped a 10% tariff on China last month, Trump has repeatedly delayed the imposition of tariffs on Canada and Mexico.
The US President has pledged to bring down prices in the US, but economists have warned that consumers in the country could be aversely affected by his trade plans.
Trump and his administration have suggested that the latest round of tariffs, though significant, are only the beginning.
Trump has vowed to go further, threatening to introduce “reciprocal” tariffs on countries that have their own duties on goods made in the US.
He has said these will come into effect as soon as next month.
Retaliatory Measures Unveiled
China and Canada unveiled retaliatory measures against the US after Donald Trump imposed his sweeping tariffs.
China on Tuesday said that it would impose fresh tariffs on a range of agricultural imports from the US next week.
Its finance ministry said additional 15% tariffs would be imposed on chicken, wheat, corn and cotton, with further 10% tariffs on sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables and dairy products.
Separately, China’s Ministry of Commerce said that it added 15 American companies, including drone maker Skydio, to its export control list, which would bar Chinese companies from exporting dual-use equipment to them.
On his part, Canadian Prime Minister, Justin Trudeau said that Ottawa would respond with immediate 25% tariffs on C$30bn ($20.7bn) worth of US imports.
He said previously that Canada would target American beer, wine, bourbon, home appliances and Florida orange juice.
Tariffs will be placed on another C$125bn ($86.2bn) of US goods if Trump’s tariffs were still in place in 21 days. “Canada will not let this unjustified decision go unanswered,” Trudeau said in a statement.
Trudeau asserted that tariffs will disrupt an “incredibly successful trading relationship,” adding that they would violate the US-Mexico-Canada free trade agreement signed by Trump during his first term.
Mexico’s President, Claudia Sheinbaum, was expected to announce her response on Tuesday morning, the country’s economy ministry said.
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