Tariffs on Canada, Mexico, and China Could Start This Weekend
Huge new tariffs on goods imported from Canada, China, and Mexico could begin as soon as this weekend.
White House Press Secretary Karoline Leavitt told reporters at a Friday press conference that the Trump administration was prepared to impose a new 25 percent tariff on imports from Canada and Mexico, along with a 10 percent tariff on imports from China. Aside from that statement, Leavitt offered few specifics and the White House has so far not released any further details about the new import taxes.
That leaves many unknowns, such as: Under what authority is President Donald Trump implementing those tariffs? Are there exceptions for certain goods, or are the tariffs being charged on all imports from the three countries? Do those tariffs apply on top of existing import duties—for example, is the new 10 percent tariff on goods from China imposed on top of the tariffs on many Chinese imports that Trump implemented during his first term—or in place of them? Will there be a process for certain companies and industries to seek relief from tariffs for goods that cannot be sourced in the United States, like tequila?
Adding to the confusion: Reuters reported earlier on Friday that those tariffs will be implemented on March 1. Leavitt called that report “false.”
Canada, China, and Mexico are the United States’ three largest trading partners. In 2023, the last full year for which data are available, the U.S. imported $475 billion of goods from Mexico, $426 billion from China, and $418 billion from Canada.
In her remarks to reporters, Leavitt said the new tariffs were being issued in response to the “illegal fentanyl that they have sourced and allowed to distribute into our country.” In an interview with CNBC on Friday, Trump’s trade advisor Peter Navarro also claimed that “fentanyl…that comes from China and Mexico” was the prime motivator for the new import taxes.
This makes very little sense. How will higher taxes on legal imports affect the flow of illegal drugs?
What the tariffs will do is raise prices for American businesses and consumers.
Though much uncertai
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