US to implement new tariffs on Canada, Mexico starting Tuesday

The US is poised to implement new tariffs against Canada and Mexico starting Tuesday, though the final rates will be determined by US President Donald Trump, according to Commerce Secretary Howard Lutnick.

Trump has previously warned of a 25 percent tariff on imports from both neighboring countries, citing concerns over illegal drug trafficking and unauthorized migration into the US. While Lutnick confirmed that the tariffs will proceed as planned, he indicated that the administration is still negotiating the exact terms.

- China also faces additional tariffs -

In a parallel move, the US is expected to impose a 10 percent tariff on Chinese imports, adding to an existing 10 percent levy introduced last month. If enforced, this will bring the total tariff on Chinese goods to 20 percent. The measure is being implemented in response to US accusations that Beijing has not done enough to curb the flow of fentanyl into the country.

In response, Chinese state media reports that the government in Beijing has prepared a set of retaliatory measures set to take effect on the same day. The Global Times, a state-run newspaper, suggested that China’s countermeasures will likely target US agricultural and food products. Despite this, analysts believe Beijing is still seeking to avoid an outright trade war and hopes to reach a resolution with Washington, though no agreement has been reached so far.

- Officials react in Canada and Mexico -

Canadian officials have warned that tariffs would be harmful to both economies and have vowed to respond if necessary. Internal Trade Minister Anita Anand, who recently met with officials in Washington, emphasized Canada’s readiness to defend its economy.

“We are steady at the wheel. We are prepared for any eventuality, but we will at every turn defend our country’s economy,” Anand told CBC News.

Last month, Canada outlined a potential list of retaliatory tariffs on USD 30 billion worth of US goods, including everyday consumer products such as pasta, clothing, and perfume. Meanwhile, the Canada Border Services Agency (CBSA) has reportedly increased efforts to combat fentanyl trafficking into the US, though American data suggests only 1 percent of fentanyl seized in the US originates from Canada.

Speaking from a summit in London, Canadian Prime Minister Justin Trudeau pushed back against allegations that Canada plays a significant role in the US fentanyl crisis, stating that his country is “not an issue” in the flow of the drug.

In Mexico, President Claudia Sheinbaum appeared to indirectly address Trump’s tariff threat during a public event in Colima, asserting that Mexico “has to be respected.” She emphasized, “Co-operation [and] co-ordination, yes, subordination, never.”

- Further trade measures expected -

Beyond tariffs on its North American neighbors, the Trump administration has also announced a 25 percent tariff on steel and aluminum imports, set to take effect on March 12. Additionally, the president has threatened to introduce custom “reciprocal” tariffs on specific countries, as well as a 25 percent tariff on imports from the European Union.