The United States will impose tariffs on imports from Canada and Mexico starting Tuesday, according to Commerce Secretary Howard Lutnick.
However, the final rates will be determined by President Donald Trump and his team.
The president has warned of 25% tariffs on imports from both countries, citing concerns over illegal drugs and migrants entering the US. Despite pushback from Canada, the administration remains firm on its plan.
In addition to tariffs on its North American neighbors, the US is preparing to impose a 10% tariff on Chinese goods. This would bring the total levy on Chinese imports to 20%, following a similar tariff introduced last month. The move is part of efforts to pressure China into taking stronger action against fentanyl trafficking into the US.
Chinese state media has reported that Beijing is preparing countermeasures, potentially targeting US agricultural and food products. While analysts believe China hopes to avoid a full-scale trade war, no resolution has been reached.
Canada has repeatedly warned that tariffs would hurt both economies. Internal Trade Minister Anita Anand, after recent talks in Washington, reaffirmed that Canada is ready to respond. Last month, the country prepared a list of $30 billion worth of US goods, including pasta, clothing, and perfume, that could face counter-tariffs.
Meanwhile, the Canada Border Services Agency has intensified efforts to curb fentanyl trafficking. According to US data, only 1% of the fentanyl seized in the country is believed to originate from Canada. Prime Minister Justin Trudeau, speaking from a summit in London, insisted that Canada is not a significant source of the drug.
Beyond North America, Trump has also announced a 25% tariff on steel and aluminum imports, scheduled to take effect on March 12. Additionally, he has threatened to impose tariffs on the European Union and implement new trade measures against individual countries.
With tensions rising, the global trade landscape faces uncertainty as nations prepare to respond to US tariffs.