US import additional 10% Tarrif on Canada
He said both the countries were still not doing enough to prevent the importation of drugs into the U.S.
US import additional 10% Tarrif on Canada latest news: President Donald Trump said Thursday that tariffs on Canadian and Mexican imports would take effect from March 4, as planned. He said both the countries were still not doing enough to prevent the importation of drugs into the U.S. China will also be hit with an additional 10 percent tariff next week on top of the 10 percent earlier this month.
Trump said in a post on Truth Social that drugs, especially fentanyl, continued to flow into the U.S. from Mexico and Canada, a significant portion made in and exported by China. He went on to say the levies would continue until the supply of drugs "stops, or is seriously limited."
During a meeting in the Oval Office, Trump said progress was being made on slowing down the flow of migrants but not drugs, particularly fentanyl. He stressed that the drugs go on killing half a million individuals.
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In February, Trump issued a warning of tariffs on every product from Canada, Mexico, and China in order to close the flow of both migrants and drugs. Once Mexico and Canada agreed to actions such as deploying more troops along the border and appointing a "fentanyl czar," Trump delayed their tariffs for a month. Nevertheless, he went forward with implementing a 10 percent tariff on everything coming from China, and that provoked China into applying its tariffs to American exports. Now, Trump declared a further 10 percent duty on Chinese imports, over and above the currently imposed tariffs.
Since Trump announced plans for tariffs on the three nations in late January, the Mexican and Canadian governments have been trying to calm tensions and convince Trump that they have been trying to patrol their borders. China's efforts, on the other hand, seem to have been less forceful. Trump's threat of an extra tariff may be an attempt to get the Chinese back to the negotiating table.
Further tariffs on the nation's three largest trading partners would compound the economic pressure that has already started to materialize from Trump's policies. Businesses that import car components, medical equipment, vegetables, and apparel into the United States are struggling with how they will be able to absorb the added expense.
Three trade associations published a joint letter to the president encouraging him to finalize an agreement with Mexico and Canada and forego the imposition of the 25 percent tariff, claiming the three nations shared a highly integrated North American supply chain that represented $20 billion worth of trade and supported over 1.6 million jobs. The U.S. textile industry exports $12.3 billion, or 53 percent, of its total overall textile exports to Mexico and Canada, which are returned as completed goods to the United States through the United States-Mexico-Canada Agreement.
Jay Foreman, the CEO of toy maker Basic Fun, which produces toys such as Tonka Trucks and Lincoln Logs in China, described the 10 percent tariff on China as a "nightmare." His company was racing "to determine how best to deal with and soften" the tariffs. He suggested that prices to consumers would increase.
Canadian and Mexican officials have been attempting to deter the Trump administration from proceeding with the tariffs, including in talks with Commerce Secretary Howard Lutnick this week. Trump's threats have been a specific challenge for Canadian officials, who say that fentanyl produced in Canada has not presented an escalating danger to the United States.
In 2020, U.S. Customs and Border Protection officers seized roughly 19 kilograms of fentanyl at the Canadian border, versus nearly 9,600 kilograms at the Mexican border, where cartels produce the drug in large quantities. A Congressional commission in 2020 discovered that Canada was not a known source of fentanyl or its precursor chemicals.
Mexico, on the other hand, is a significant source of fentanyl shipments. Over the past months, the government of Mexico expanded its operations targeting the Sinaloa state with top-level arrests, drug laboratory raids, and drug confiscation shaking the business of the Sinaloa Cartel. After Trump threatened to slap a 25 percent tariff on Mexican imports earlier this month, Mexico President Claudia Sheinbaum deployed 10,000 national guard troops along the border and sent hundreds more soldiers into Sinaloa state, leading to top-level arrests and busts of drug factories.
Whether these will prove sufficient to appease Trump remains to be seen. His Thursday posting appeared to demystify the timing of his different tariffs following his Wednesday statements at the White House that spread uncertainty regarding whether or not the March 4 charges had been postponed.
Asked about tariffs on Canada and Mexico on Wednesday, Trump indicated that they would move forward but referred to April 2, the date when he has indicated another set of tariffs on several countries, which he has referred to as reciprocal tariffs, would be activated. The comments were seen by some investors as an indication the president intended to keep on delaying the drug and migrant-related tariffs, and the peso and the Canadian currency appreciated. Yet, the White House later clarified that the date of April 2 applied to other tariffs, not the ones for Canada and Mexico.
"The April Second Reciprocal Tariff date will be in full force and effect," Trump wrote on Thursday.
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