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President Donald Trump said new tariffs are scheduled to go into effect next Tuesday on the U.S.’s top trade partners, citing a failure to limit the flow of fentanyl into the country.
“Drugs are still pouring into our Country from Mexico and Canada at very high and unacceptable levels,” Trump wrote on social media on Thursday. “A large percentage of these Drugs, much of them in the form of Fentanyl, are made in, and supplied by, China.”
“We cannot allow this scourge to continue to harm the USA,” he continued, detailing his tariff plans.
Tariffs of 25% on goods imported from Canada and Mexico are set to begin on March 4, as previously laid out when the nations negotiated a one-month reprieve from the U.S.’s earlier threats. The duties directed at Canada include a carveout for energy products, which will be taxed at 10%, in an effort to keep gas prices more manageable.
Both countries had planned to retaliate with their own tariffs, with Canada taking aim at some $20.4 billion worth of goods before the delay. Mexico had not publicly announced its plans, but President Claudia Sheinbaum had planned for both tariffs and non-tariff retaliatory measures.
Unlike Canada and Mexico, China was unable to convince Trump to back down from his threats, so the U.S. levied 10% tariffs on all imports from the country. Trump said Thursday that those tariffs would be increased to a 20% duty on all imports.
Earlier this month, China hit back at the U.S. with its own tariffs, export controls related to critical minerals, and a series of targeted actions at companies like Google (GOOGL-0.84%) and Illumina (ILMN-3.89%). Beijing also filed a complaint at the World Trade Organization challenging Trump’s actions.
The president’s tariffs would increase costs for the many businesses that import goods from those nations, which are the U.S.’s closest trade partners. The U.S. imported almost $506 billion worth of goods from Mexico, $439 billion from China, and $413 billion from Canada in 2024, according to trade data.
Most, if not all, U.S. industries will be impacted by the tariffs, from retailers to restaurants to the automotive industry. The National Restaurant Association has warned that tariffs on Mexico and Canada could lead to higher menu prices, putting the burden on consumers, while cars could become more expensive by thousands of dollars.
Trump noted that his reciprocal tariffs on major U.S. trade partners are still scheduled to be implemented as soon as April. Those duties would factor in not just the tolls other countries impose on U.S. goods, but also foreign subsidies, exchange rates, and taxes on imports.
Businesses are also waiting for the U.S. to formally announce tariffs on the European Union member nations, which Trump on Wednesday said is coming “very soon.” He plans to announce a 25% tariff on imports from Europe, but did not say whether there would be any exemptions.