President Donald Trump confirmed Thursday that 25% tariffs on Mexican and Canadian goods will take effect next Tuesday, March 4 as scheduled. He also announced plans to impose an additional 10% tariff on Chinese imports on the same date, on top of the 10% tariff that went into effect earlier this month.

The simultaneous tariffs targeting America’s three largest trading partners could significantly increase prices for American consumers at a time when inflation is already rising.

In a Truth Social post Thursday morning, Trump cited continued drug trafficking as the reason for the Mexico and Canada tariffs, stating: “Drugs are still pouring into our Country from Mexico and Canada at very high and unacceptable levels.” He emphasized that the tariffs would proceed as planned until the drug flow “stops, or is seriously limited.”

The announcement created market volatility, with the Dow dropping 194 points (0.45%), the S&P 500 falling 1.59%, and the Nasdaq Composite declining 2.78%.

There had been confusion the previous day when Trump mentioned “April 2nd for everything” during his first Cabinet meeting, leading many to believe the tariffs would be delayed beyond the current 30-day pause.

These tariffs raise concerns about retaliatory measures from the affected countries.

  • China has already responded to the initial February 4 tariffs by imposing 15% taxes on certain American exports including coal and liquefied natural gas, and 10% tariffs on crude oil, agricultural machinery, and large vehicles. A Chinese Commerce Ministry spokesperson stated Friday that China “firmly opposed” additional tariffs, calling them a violation of WTO rules.
  • Canada launched “Operation Blizzard” to intercept illegal contraband, focusing on fentanyl and synthetic narcotics. The CBSA reported seizing 56.1 grams of fentanyl this month. If tariffs proceed, Canada may impose retaliatory tariffs on US goods including ceramic and steel products, furniture, alcoholic beverages, orange juice, pet food, and potentially energy exports.

Beyond these measures, Trump plans to announce “reciprocal tariffs” globally on April 2, following a trade investigation he ordered. These tariffs aim to balance trade with countries that have higher tariff rates on US exports.

Commerce Secretary Howard Lutnick specifically mentioned Canada’s 5% national sales tax as an issue, saying, “We’re supposed to have a free trade agreement with Canada, but they have a 5% national tax. They cheat right down the middle, and the president is sick and tired of it.”