Donald Trump confirms he will impose 25% tariffs on Mexico and Canada on Tuesday
Free Unlock White House Watch News
Your guide on what the 2024 U.S. election means to Washington and the world
Donald Trump said he would impose a 25 tariff on all imports in Canada and Mexico starting Tuesday, adding that there was no “room” for last-minute negotiations.
The president’s rhetoric has exacerbated market sell-offs as tariffs could damage the U.S. economy and trigger a trade war with the U.S.’s largest trading partner.
The S&P 500 fell 1.8% after the worst meeting of the year, while the technology-led Nasdaq composite fell 2.6%. The situation in individual stocks is getting worse, with chip maker NVIDIA falling 8.7% and ConocoPhillips in the energy group down 6.6%.
Trump’s remarks came the day after his Commerce Secretary Howard Lutnick suggested the degree and timing of planned tariffs, describing the situation as “liquid.”
But at the White House Monday afternoon, Trump said: “Tariffs, you all set. They’re effective tomorrow.”
The news announced by Trump on Monday comes after many recent data have attracted attention to the health of the U.S. economy.
On Monday, the Atlanta Federal Reserve’s running estimates of U.S. GDP growth pointed to a 2.8% drop in the first quarter, a sharp drop from Friday’s recommendation. Economists attribute the shift to uncertainty in Trump’s tariffs.
Washington has been threatening taxes in Mexico and Canada for months and demanding them to tighten borders and cut trafficking in deadly opioid fentanyl.
Last month, the president issued an executive order that imposes an additional 25% tariff on all imports from Canada and Mexico, with the exception of Canadian oil and energy products, which faces a 10% levy.
Canada is by far the largest foreign oil supplier in the United States, accounting for about 60% of its crude oil imports.
A few days later, he postponed the implementation of the tariffs until March 4, following a last diplomacy between Trump and Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau.
On Monday, Trump said Canada and Mexico “will impose tariffs”, suggesting that the measures will inspire both countries to move more manufacturing to the United States.
“So all they have to do is build car plants frankly and there are no tariffs in the United States,” he said.
Last week, Trump threatened to raise his additional tariffs on Chinese imports to 20% starting Tuesday. A White House official confirmed on Monday that Trump has signed an executive order requiring a 20% tariff on Chinese import tax rates starting Tuesday.
Asked on Monday what the highest tariff he would apply for on China’s imports, he replied: “I can’t say it depends on their role in the currency, it depends on what they are doing. . Some kind of economic revenge.”
Trump added that he did not expect Beijing to have “revenge too much”.
Canadian Foreign Minister Mélanie Joly said Canada would be “ready” in retaliatory tariffs if the United States imposes its taxes.
The U.S. president’s comment on tariffs comes as he announced that the world’s largest chip maker, TSMC, will invest $100 billion in U.S. senior manufacturing, the latest proposal to the Trump administration.
Other reports by George Stell
