U.S. President Donald Trump has announced that new tariffs will be imposed on Canadian and Mexican exports to the United States on Tuesday. However, there is now speculation that these tariffs may not be as high as initially planned.
In an interview on the Fox News show “Sunday Morning Futures,” Commerce Secretary Howard Lutnick stated that the situation is still fluid and the final decision on tariffs will be left to the President and his team to negotiate.
This comes as a surprise, as Trump had previously announced a 25% tariff on all goods from Mexico and non-energy imports from Canada due to their perceived lack of efforts in curbing the flow of illicit drugs into the United States. However, Lutnick acknowledged that both countries have made progress in securing their borders, but the issue of fentanyl still remains a concern.
Last month, Trump first announced the tariffs but then delayed their effective date after Mexican President Claudia Sheinbaum promised to send 10,000 troops to the northern border to address the issue. Similarly, Canadian Prime Minister Justin Trudeau also announced plans to appoint a “fentanyl czar” to tackle the problem.
In addition to the tariffs on Canada and Mexico, Trump is also adding another 10% tariff on Chinese goods on Tuesday, doubling the 10% duties that were imposed on February 4th. The President has continually blamed China for the influx of fentanyl into the U.S.
However, Lutnick’s comments suggest that the Trump administration may not be imposing the full 25% tariffs on Mexico and Canada, signaling a potential change in approach to the issue.
Meanwhile, Sheinbaum, whose country relies heavily on trade with the U.S., stated that they were expecting to reach a deal with the United States before the tariffs were implemented. If no agreement is reached, Mexico has indicated that they will retaliate by imposing tariffs on U.S. products exported to their country.
This news comes after Trudeau’s strong criticism of the initial U.S. tariff on Canadian imports in early February, calling it “entirely unjustified.” In response, Canada announced a 25% tax on U.S. steel and aluminum products exported to their country, making them the top exporter of both metals to the U.S.
Economists have warned that these tariffs would ultimately result in increased prices for consumers and higher costs for businesses. The U.S.’s three biggest trading partners are Mexico, Canada, and China, with the 27-nation European Union collectively being larger than all three individually.
Trump’s first Cabinet meeting of his new presidential term last week saw him announce that he would soon be imposing a 25% tariff on EU exports to the U.S. He also accused the EU of being formed with the intention of harming the U.S. economically.
In response, the EU has promised to swiftly and firmly respond to these “unjustified” trade barriers and has threatened to impose their own tariffs on U.S. imports if Trump follows through with his plans.
Trump has also hinted at imposing tariffs on automobile imports, lumber, pharmaceutical products, and other goods. However, many economists have expressed concerns that these tariffs could lead to higher prices and potentially worsen inflation in the U.S.
Despite these concerns, Trump remains firm on his decision to impose tariffs, stating that they will ultimately be beneficial to the U.S. economy, the largest in the world. He believes that these tariffs will incentivize foreign companies to do more manufacturing in the U.S. in order to avoid the additional costs of exporting their products.
In the short term, Trump’s focus has been on addressing the issue of drug trafficking into the U.S. In a recent social media post, he stated that over 100,000 people died last year due to the distribution of dangerous and highly addictive drugs, and millions have died over the past two decades. He also emphasized the devastating effect on families and pledged to take action to combat this issue.
In conclusion, the situation regarding U.S. tariffs on Canadian and Mexican exports is still uncertain, with Lutnick’s comments suggesting a potential change in approach. While these tariffs may have short-term repercussions, Trump remains determined to address the issue of drug trafficking and protect the U.S. economy in the long run.
