US Tariffs on Mexico, Canada to Go Into Effect Tuesday

US Commerce Secretary Howard Lutnick confirmed on Sunday that US tariffs on Canada and Mexico will go into effect on Tuesday, but said President Donald Trump will “determine whether he sticks to the 25% level as planned,” in the first indication that the US administration may not impose the full tariffs on all goods from the two countries.

“This is a fluid situation,” Lutnick told Fox News’ “Sunday Morning Futures,” adding that “there will be tariffs on Tuesday on Mexico and Canada. Exactly what they are, we’ll leave that to the president and his negotiating team.”

Lutnick said the two countries have “done a reasonable job” of securing their borders with the United States, despite the continued flow of fentanyl into the country.

Lutnick said Trump is expected to raise tariffs on China on Tuesday unless it stops smuggling fentanyl into the United States.

Trump announced on Thursday that 25% tariffs he ordered on Mexico and Canada would go into effect on March 4 as scheduled, saying drugs were still flowing into the United States from the two countries.

Trump added that he would impose an additional 10% tariff on Chinese goods that day, in addition to the 10% tariff he imposed on February 4 on imports from China.

In three executive orders in early February, Trump imposed 25% tariffs on Mexico and Canada, with the exception of Canadian energy imports, which will be subject to a 10% tariff, and a 10% tariff on goods coming from China, before postponing them on Ottawa and Mexico after an agreement with the leaders of the two countries to control the border.

Mexico and Canada, the United States’ two largest trading partners, have pledged to impose counter-tariffs, while China has said it will appeal Trump’s decision to the World Trade Organization and take other “counter-measures.”

US President Donald Trump's 10% tariffs on all Chinese products have gone into effect, while Beijing has retaliated by imposing tariffs on some US imports.

The potential trade war is raising concerns about slowing global growth and fueling inflation.

This comes hours after US Treasury Secretary Scott Bessent proposed that Washington, Ottawa and Mexico impose uniform tariffs on China in response to what he called "unfair trade policy from Beijing."

Bessent told CBS News that the Mexican government had offered to impose tariffs similar to the US on China, adding: "We haven't heard from the Canadian government about that yet."

The US Treasury Secretary expressed his belief that "imposing uniform tariffs on China by the US, Mexico and Canada would be a very good start in responding to unfair trade policy from Beijing," considering that "China is in an economic crisis, they are having a huge economic downturn, and it is unacceptable for them to export that to the rest of the world." According to him.

US President Donald Trump has ordered massive tariffs on Canada, Mexico and China, sparking a trade war that could undermine global growth and stoke inflation.

“We don’t know yet whether the cost to American families from the tariffs will be zero, because it depends on what happens, but what I can tell you is that I’m not worried about the tariffs on China. China will pay the tariffs because their business model is to export their way out of this economic downturn,” he continued.

“They’re the most unbalanced economy in modern times, and the idea that they’re going to cut production because of the tariffs is wrong. They’re going to continue to flood the market. They’re going to bear the price declines because of the tariffs, and they’re going to bear any additional tariffs.”

Trump caused confusion last week when he mentioned a possible deadline of April 2 for tariffs on Canada and Mexico, but later reaffirmed the deadline was Tuesday and said he would add another 10% tariff on Chinese goods, effectively doubling the 10% tariff imposed on Feb. 4.