Image Credit: Adobe Stock Images/Natalia.com
In early February, the news had originally broke that President Trump signed three executive orders that would enact tariffs on three key US trade partners: Canada, Mexico, and China.1 These taxes on imports, noted Trump at the time, stemmed from the threat posed by illegal aliens and drugs, including fentanyl, as he declared it a national emergency under the International Emergency Economic Powers Act.
Following his decision to then place a 30-day pause2 on the Canada and Mexico tariffs, the suspension was meant to allow time for negotiations on the immigration (through a boost in border security) and drug trafficking front to occur. Canada had announced that it would be increasing its physical and technological presence at the US-Canada border, as part of its $1.3 billion border enhancement project, while Mexican President Claudia Sheinbaum added that she would deploy the US-Mexico border with 10,000 Mexican National Guard members.2
However, per AP,3 Trump has now noted that this aforementioned pause could potentially be lifted come March 4, which means that a 25% tariff will be implemented on imports from Canada and Mexico, with certain assets being taxed differently, such as Canadian energy resources, including natural gas and oil. Those will receive a 10% tariff. He also recently reinstated a 25% steel import tax,4 along with raising the tariff rate on aluminum from 10% to 25%.
China’s tariff—which originally involved a 10% tax on goods—is expected to double to 20%.3
“Drugs are still pouring into our country from Mexico and Canada at very high and unacceptable levels. A large percentage of these drugs, much of them in the form of Fentanyl, are made in, and supplied by, China,” wrote Trump in a Truth Social post.5 “… We cannot allow this scourge to continue to harm the USA, and therefore, until it stops, or is seriously limited, the proposed tariffs scheduled to go into effect on March 4 will, indeed, go into effect, as scheduled. China will likewise be charged an additional 10% tariff on that date.”
The post also references the April 2 reciprocal tariff6—where the United States would match the tax rates of what trading partners also charge on imports—which reportedly “will remain in full force and effect.”
References
1. Saraceno N. Trump Imposes Trade Tariffs on Canada, Mexico, and China. Pharmaceutical Commerce. February 4, 2025. Accessed February 4, 2025. https://www.pharmaceuticalcommerce.com/view/trump-trade-tariffs-on-canada-mexico-china
2. Saraceno N. Trump Pauses Canada and Mexico Tariffs. Pharmaceutical Commerce. February 4, 2025. Accessed February 11, 2025. https://www.pharmaceuticalcommerce.com/view/trump-pauses-canada-mexico-tariffs
3. Boak J, Sánchez F. Trump plans tariffs on Mexico and Canada for Tuesday, while doubling existing 10% tariffs on China. AP. February 27, 2025. Accessed February 28, 2025.https://apnews.com/article/trump-tariffs-mexico-canada-71761a2894e13a050717afda4fd8131a
4. Saraceno N. United States Elevates Tariffs on Steel and Aluminum. Pharmaceutical Commerce. February 11, 2025. Accessed February 28, 2025. https://www.pharmaceuticalcommerce.com/view/united-states-elevates-tariffs-steel-aluminum
5. Trump D. Post regarding tariffs. Truth Social. February 27, 2025. Accessed February 28, 2025. https://truthsocial.com/@realDonaldTrump/posts/114076153524132682
6. Saraceno N. Trump Enacts Reciprocal Tariffs on Trading Partners. Pharmaceutical Commerce. February 13, 2025. Accessed February 28, 2025. https://www.pharmaceuticalcommerce.com/view/trump-enacts-reciprocal-tariffs-on-trading-partners