Trump’s Crushing Tariffs: New Deadline Spells Trouble for Canada, Mexico, and China

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Tejaswini Deshmukh
Tejaswini Deshmukh
Tejaswini Deshmukh is an editor at RegTech Times, covering financial crimes, sanctions, and regulatory developments. She specializes in RegTech advancements, compliance challenges, and financial enforcement actions.

The United States will move forward with tough new tariffs on imports from Mexico, Canada, and China, President Donald Trump confirmed. The 25% tariff on goods from Canada and Mexico will take effect on March 4, while an extra 10% duty on Chinese imports will also be imposed on that date.

There was some confusion earlier in the week when Trump seemed to suggest the deadline could be moved to April. However, in a post on his social media platform, Truth Social, Trump made it clear that the tariffs would go ahead as planned. He stated that drugs, especially fentanyl, were still entering the country at “very high and unacceptable levels.” He emphasized that these tariffs were necessary until drug smuggling was stopped or significantly reduced.

Meanwhile, some Trump administration officials noted that April 4 was a separate deadline for a study on global trade policies. This study will help the administration decide on new tariffs for other countries. The President’s economic advisers argue that European countries have unfair trade practices, including high value-added taxes, which function like tariffs. However, this decision will be made after the study is completed on April 1.

Trump’s Harsh Tariffs on China Could Backfire on the US Economy

Canada and Mexico Rush to Avoid Heavy Economic Impact

The proposed tariffs on Canada and Mexico could cause major disruptions to trade between the three neighboring countries. The North American economy is deeply connected, and many businesses rely on goods moving freely between the three nations.

Canadian and Mexican officials are now in Washington to negotiate with U.S. leaders and try to prevent the tariffs. Talks began on Thursday and will continue through Friday. Mexican officials are meeting with key U.S. trade representatives, including the newly appointed U.S. Trade Representative and the Commerce Secretary.

Canada has also responded by highlighting the steps it has taken to secure the border and stop illegal drugs from entering the U.S. The Canadian Public Safety Minister stated that Canada has already met all U.S. requirements for border security. He pointed out that Canada has increased security efforts and that the Canada Border Services Agency is now focused on stopping fentanyl and other synthetic drugs.

Despite these efforts, the U.S. administration appears determined to proceed with the tariffs unless there is a drastic reduction in illegal drug trafficking.

Trump’s Trade War Escalates: US Pressures Mexico with Harsh Tariff Demands

China Faces Even Higher Tariffs as Trade Tensions Grow

Trump also announced an additional 10% tariff on Chinese goods, which will be applied on March 4. This is in addition to the 10% tariff that was imposed on Chinese imports on February 4. The reason for this extra charge was not immediately clear, but Trump has often accused China of unfair trade practices.

China responded by urging the U.S. to discuss trade issues through dialogue and cooperation rather than imposing new tariffs. Chinese officials sent a letter to the U.S. Trade Representative asking for fair discussions on economic and trade matters.

The decision to increase tariffs could escalate tensions between the two countries, which have been locked in a trade dispute for years. The U.S. has previously accused China of unfair trade practices, including currency manipulation, intellectual property theft, and exporting synthetic drugs like fentanyl to the U.S.

As March 4 approaches, businesses in all three countries—Canada, Mexico, and China—are bracing for the impact of these tough new trade measures. The situation remains uncertain, with trade talks ongoing and officials working behind the scenes to prevent further economic damage.

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