U.S. to impose tariffs on Mexico, Canada from March 4

U.S. Commerce Secretary Howard Lutnick announced that while the 25% tariff rate on Canada and Mexico may be adjusted, the additional tariffs will go into effect as planned on March 4 (local time). This marks the first time since Donald Trump’s inauguration that tariffs have been imposed on allied nations, signaling the escalation of Trump’s trade war, which spares neither adversaries nor allies in pursuit of American interests.

In an interview with Fox News on Sunday, Lutnick confirmed, “There are going to be tariffs on Tuesday on Mexico and Canada.” Last month, Trump signed an executive order imposing tariffs on Canada, Mexico, and China, citing their failure to curb illegal immigration and fentanyl trafficking. While additional tariffs on China were expected, the decision to impose a 25% tariff on neighboring allies Canada and Mexico was met with widespread shock. Both countries had secured a one-month reprieve after pledging to tighten border security, but ultimately, they could not avoid the tariffs. Lutnick reinforced Trump’s stance, stating, “Fentanyl continues to come into this country and continues to murder our people, and the ingredients are made in China.”

Despite the firm stance on implementation, Lutnick suggested that the tariff rates on Canada and Mexico could still be revised. “we’re going to leave that for the president and his team to negotiate,” he said, adding that “he(the president) ’s sort of thinking about right now how exactly he wants to play with Mexico and Canada and that is a fluid situation.” Some speculate that Canada and Mexico’s willingness to align with U.S. tariffs on China could influence potential adjustments. U.S. Treasury Secretary Scott Bessent told CBS in an interview that Mexico is reviewing the possibility of imposing tariffs on China in coordination with U.S. trade policy, calling it a very promising start.

Meanwhile, Lutnick confirmed that starting March 4, the U.S. will impose an additional 10% tariff on Chinese goods. This follows the initial 10% hike implemented last month, bringing the total tariff increase to 20 percentage points. The Wall Street Journal criticized the move in an editorial, stating that President Trump claims tariffs will usher in a new era of American prosperity, but the U.S. economy does not share his enthusiasm. The article pointed out that various economic indicators over recent weeks suggest that first-quarter growth has slowed.


Ji-Sun Choi aurinko@donga.com