US Commerce Secretary Howard Lutnick confirmed that tariffs on Canada and Mexico will proceed as planned on Tuesday, although the exact levels will be determined by President Donald Trump. The proposed 25% tariffs are a response to what the US describes as an unacceptable flow of illegal drugs and migrants into the country. Additionally, a 10% tariff on Chinese imports is expected to be implemented, raising the total levy on Chinese goods to at least 20%, following a previous 10% tariff.
China has reportedly prepared countermeasures, likely targeting US agricultural and food products, which could escalate tensions into a full-scale trade war. Despite this, analysts believe China still seeks to negotiate a truce with the Trump administration.
Trump views tariffs as a means to address trade imbalances and protect US manufacturing. Canadian Internal Trade Minister Anita Anand stated that Canada is prepared to respond if tariffs are imposed, emphasizing the potential harm to both economies. Canada previously identified $30 billion worth of US goods for possible counter-tariffs. Canadian Prime Minister Justin Trudeau noted that Canada is not a significant source of illegal fentanyl entering the US.
— news from BBC.com