President Donald Trump announced Thursday his plan to place tariffs on Mexico and Canada beginning on March 4, after delaying them earlier this month.
Trump is justifying the tariffs as a means to coerce U.S. neighbors to do more to prevent cross-border fentanyl trafficking. He also said that he is hitting China, which produces many of the precursor chemicals found in drugs imported into the U.S., with an additional 10 percent tariff on the same day.
“We cannot allow this scourge to continue to harm the USA, and therefore, until it stops, or is seriously limited, the proposed TARIFFS scheduled to go into effect on MARCH FOURTH will, indeed, go into effect, as scheduled,” Trump said on Truth Social.
“China will likewise be charged an additional 10% Tariff on that date. The April Second Reciprocal Tariff date will remain in full force and effect.”
Trump’s latest tariff announcement comes the day after the Senate confirmed Jamieson Greer to be U.S. Trade Representative by a 56-43 vote. A handful of Democrats joined 51 Republicans in voting for Greer, who was opposed by libertarian Senator Rand Paul (R., Ky.) and most Democrats.
Earlier this month, Trump delayed enacting 25 percent tariffs on Mexican and Canadian goods after both nations agreed to enhance border security operations and mitigate fentanyl trafficking. The respective deals came with a month-long pause on the tariffs to make room for further negotiations with Mexico and Canada.
Mexico and Canada had made similar concessions after previous rounds of talks resulting from Trump’s tariff threats. Mexican President Claudia Sheinbaum and outgoing Canadian Prime Minister Justin Trudeau have promised retaliatory tariffs on U.S. goods if Trump follows through on his rhetoric.
Trump implemented 10 percent tariffs on China at the start of February, following through on prior threats to do so. China quickly responded with a slate of retaliatory measures targeting American imports and companies.
Trump also directed his administration to develop a reciprocal tariff plan earlier this month to correct perceived trade imbalances between the U.S. and its partners. Trump routinely rails against American trading partners for supposedly ripping the U.S. off and being response for the U.S. trade deficit.
Moreover, Trump recently imposed 25 percent aluminum and steel tariffs on all countries by closing Biden era loopholes and exemptions that allowed many countries to avoid the tariffs. In a similar fashion, Trump has floated tariffs against the European Union and additional tariffs on foreign cars and semiconductor chips.
Trump’s suite of tariffs were a major campaign promise and they would build on the tariffs Trump imposed during his first term. On the campaign trail, Trump called “tariff” the most beautiful word in the English language and often boasted about the grand tariffs he would apply if elected again.
Former President Joe Biden largely maintained Trump’s tariffs and expanded the U.S. tariff regime in other areas, turning it into a policy tool with bipartisan support. Economists have warned that Trump’s dramatic tariff plans could generate price increases, a fear his top economic officials have downplayed as they promise to combat inflation.
U.S. border authorities seized 21,148 pounds of fentanyl at the southern border and 43 pounds at the northern border. Fentanyl and its precursor chemicals are primarily produced in China and trafficked through Mexico. Over 100,000 Americans died of drug overdoses in 2022 and 2023, the peak of a 20 year long rise in drug overdose fatalities. Last year, the number of drug overdose deaths was projected to drop slightly below 100,000 based on 12 month data ending in August 2024.