- Tariffs on Canadian and Mexican imports set to begin next month after a 30-day suspension.
- Mexico and Canada preparing responses, with Mexico aiming for last-minute negotiations.
- Concerns rise over economic impact, with businesses and economists warning of inflation risks and potential trade conflicts.
U.S. President Donald Trump has reaffirmed that tariffs on Canada and Mexico will take effect as scheduled next month, marking the end of a temporary suspension. Speaking at a White House press conference alongside French President Emmanuel Macron, Trump emphasized that his broader strategy of reciprocal tariffs remains on track, with additional import taxes expected to follow in April, reports Associated Press.
Under the announced plan, Mexican imports will be taxed at 25%, while most Canadian goods, including oil and electricity, will face a 10% tariff. The administration cites concerns over illegal immigration and drug smuggling as key reasons for targeting these countries, despite their ongoing efforts to address these issues.
While Trump argues that the tariffs will boost domestic manufacturing and reduce the federal deficit, economists warn of rising costs for consumers and businesses, particularly in industries reliant on imported raw materials like steel and aluminum. Major retailers, including Walmart, have voiced concerns over uncertainty, while the University of Michigan’s consumer sentiment index has fallen sharply amid fears of inflation and economic slowdown.
Mexican President Claudia Sheinbaum remains hopeful for a last-minute agreement, noting that discussions with U.S. officials continue. Meanwhile, Canada has taken steps to address drug-related concerns in an effort to ease tensions. However, both nations, along with European allies, are considering retaliatory tariffs, raising the prospect of a wider trade conflict that could impact global markets.
Trump’s insistence on aligning U.S. tariff rates with those of other countries—potentially factoring in subsidies and value-added taxes—adds further uncertainty. With negotiations ongoing and trade tensions escalating, businesses and policymakers will be closely watching the administration’s next steps.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Associated Press
