President Donald Trump has confirmed that 25% tariffs on imports from Mexico and Canada will take effect on March 4 as scheduled, citing insufficient progress in combating illegal drug flows, particularly fentanyl, into the United States.
The decision comes despite recent efforts from both neighboring countries to address U.S. concerns. Mexico recently released nearly 30 top cartel operatives wanted by American authorities, while both nations have implemented additional border security measures following Trump’s initial February threat.
President Claudia Sheinbaum of Mexico has not officially responded but previously secured a one-month delay in tariff implementation. Her team continues negotiating while seeking ways to protect Mexico’s economy from the potential impact.
Trump maintains that fentanyl and other drugs continue entering the U.S. at “very high and unacceptable levels,” with China cited as a significant source country. The tariffs will remain until drug flows “stop, or are seriously limited,” according to the President.
Economic analyses suggest these tariffs could severely damage Mexico’s economy, potentially triggering a recession with losses of approximately 1.4 million jobs and wage decreases of 4.5-7%, depending on whether retaliatory measures are implemented.
Canadian and Mexican officials continue meeting with U.S. Commerce Secretary Howard Lutnick in last-minute attempts to avert the tariffs, though prospects remain uncertain as the March 4 deadline approaches.