U.S. to enforce 25% tariffs on Mexico, Canada Tuesday

Donald Trump, President of the United States, has confirmed that 25% tariffs on imports from Mexico and Canada will take effect on Tuesday, following the expiration of a temporary deal to suspend the levies.

The decision has sparked fears of a trade war across North America, with financial markets reacting negatively to the announcement.

The tariffs, which will be implemented at 12:01 a.m. on Tuesday, will also include a 10% duty on Canadian energy exports to the U.S. In addition, Trump has increased tariffs on Chinese goods from 10% to 20%, citing Beijing’s failure to address the “illicit drug crisis.”

Claudia Sheinbaum, Mexican President, swiftly condemned the move, announcing retaliatory tariffs on American goods. Canadian Prime Minister Justin Trudeau also vowed to introduce “far-reaching” countermeasures, warning that the trade restrictions would harm both economies.

Trump had previously agreed to a temporary one-month pause on the tariffs after negotiations with Sheinbaum, while discussions with Canada remained ongoing. However, in a press briefing at the White House on Monday, he made it clear that there was no more room for compromise.

“The tariffs, you know, they’re all set. They go into effect tomorrow. What they’ll have to do is build their car plants, frankly, and other things, in the United States, in which case they have no tariffs”, Trump stated.

While Mexico and Canada have sought diplomatic solutions, China has taken a more aggressive stance.

Unlike its North American counterparts, Beijing has not reached a temporary agreement with Washington and has vowed to retaliate against the tariff hike.

As tensions escalate, economists warn that the trade measures could disrupt supply chains, increase consumer costs, and strain diplomatic relations between the U.S. and its key trading partners.