Donald Trump announces 25% tariffs on Canada and Mexican imports, effective March 4

US President Donald Trump confirmed on Monday (March 3) that tariffs on Canadian and Mexican imports will take effect on Tuesday, dismissing any possibility of last-minute deals.

“Tomorrow — tariffs 25% on Canada and 25% on Mexico. And that’ll start,” Trump told reporters in the Roosevelt Room. He stated that the tariffs are intended to pressure the two US neighbors into stepping up their fight against fentanyl trafficking into the United States.

No exemptions for the two neighbors

When asked if Canada or Mexico could still negotiate exemptions, Trump was firm in his stance. “No room left for Mexico or for Canada,” he said. “They’re all set. They go into effect tomorrow.”

Trump had previously granted a one-month delay in February after both countries pledged concessions, including Canada appointing a fentanyl czar and bolstering border security. However, he now insists that these measures are insufficient.

The key provisions include:

• 25% tariffs on all imports from Canada and Mexico, except Canadian energy, which will face a 10% tariff.
• 25% tariffs on steel and aluminum beginning March 12, with significant impacts on Canada and Mexico.
• Sector-specific tariffs targeting automobiles, semiconductor chips, and pharmaceutical drugs, which could take effect as early as April 2.

Additional tariffs on China

Trump also announced new tariffs on Chinese imports, adding another 10% tariff on goods from China, which will be imposed on top of the initial 10% he implemented last month.

Changes to tariff policy implementation

In preparation for enforcement, Trump amended earlier executive orders to adjust tariff provisions. A key modification suspends a rule that previously allowed duty-free shipping for low-value goods from Mexico and Canada, ensuring that all imports will be subject to the new duties.

Both Canada and Mexico have attempted to avert the tariffs by implementing additional security measures, but Trump remains unconvinced. A White House official indicated that the key metric Trump is watching is the number of domestic fentanyl-related deaths, signaling that further tariff adjustments may be contingent on significant reductions in drug trafficking.