US Commerce Secretary confirms tariffs on neighboring countries will begin Tuesday, while both Canada and Mexico prepare for counteractions amid heightened trade tensions.**
Looming Tariffs on Canada and Mexico Set to Take Effect Amid Trade Tensions**
Looming Tariffs on Canada and Mexico Set to Take Effect Amid Trade Tensions**
As the US prepares to implement tariffs, both Canada and Mexico brace for potential economic fallout and retaliatory measures.**
US tariffs on Canada and Mexico are on the verge of being implemented on Tuesday, marking a significant escalation in trade tensions, as confirmed by US Commerce Secretary Howard Lutnick. The tariffs, potentially as high as 25%, have been proposed by President Donald Trump in response to the perceived rise in illegal drugs and migrants entering the United States.
Lutnick stated during a recent interview on Fox News that while the tariffs are certain, the specifics will be determined through further negotiations. A separate 10% tariff on Chinese imports is also on the horizon, reflecting ongoing frustrations with China's handling of fentanyl trafficking. Should both tariffs take effect, Chinese exports could face an overall tariff of at least 20%.
Chinese officials have signaled readiness to retaliate against US tariffs, especially targeting American agricultural products, thereby raising the stakes in an already fragile trade relationship between the two global powers. Despite mutual desire for a resolution, no negotiations have yielded tangible results so far.
On the Canadian front, the government has expressed deep concerns about the economic implications of the tariffs but remains committed to protecting its markets. Internal Trade Minister Anita Anand mentioned that Canada is prepared to respond decisively, referencing a potential $30 billion list of American goods for retaliatory tariffs, consisting of essential items like pasta and apparel.
Prime Minister Justin Trudeau emphasized that Canada should not be regarded as a major contributor to the fentanyl crisis affecting the US, noting recent data indicating that only a fraction of the contraband originates from Canada. Meanwhile, Mexican President Claudia Sheinbaum made a clarion call for respect in relations with the US, asserting that cooperation should not come at the cost of subordination.
With additional tariffs on steel and aluminum set to follow and Trump’s threats of further tariffs against the European Union, the unfolding economic landscape remains precarious as all parties navigate the complex terrain of trade relations.
