- The U.S. reinstated 25% tariffs on imports from Canada and Mexico, along with a 10% duty on Canadian energy products.
- Canada and Mexico announced retaliatory measures, with Mexico calling Trump’s move “unilateral” and “defamatory.”
- China hit back with new tariffs on U.S. agricultural goods after Trump raised duties on Chinese imports by another 10%.
The United States has officially lifted its month-long tariff pause on Canada and Mexico, marking the end of any hopes for another delay. Starting Tuesday, imports from both countries will be hit with a 25% tariff, as per amendments to President Donald Trump’s previous executive orders. Additionally, Canadian energy products will now carry a 10% tariff.
These tariffs were initially set to take effect on February 4, but temporary agreements with Canada and Mexico led to a brief postponement. The deals focused on reducing migration into the U.S. and combating fentanyl trafficking—two issues that, according to the White House, have not been “adequately addressed.” As a result, the tariffs are moving forward.
International Backlash and Retaliation
Canadian Prime Minister Justin Trudeau wasted no time condemning the move. “Let me be unequivocally clear—there is no justification for these actions,” he said Monday. In response, Canada will slap retaliatory tariffs of 25% on $155 billion worth of U.S. goods, with $30 billion of those duties kicking in immediately. The remaining $125 billion will follow in three weeks.
Mexico, too, is gearing up to retaliate. President Claudia Sheinbaum announced that Mexico will unveil its countermeasures on Sunday, including a mix of tariff and non-tariff actions. She criticized Trump’s decision, calling it “unilateral” and “defamatory.” According to Sheinbaum, Mexico has taken “significant actions” in the past month to combat organized crime and drug trafficking, yet the U.S. remains unsatisfied.
“There is no reason, no justification for this decision that will impact both our peoples,” Sheinbaum stated. “We stand for cooperation, not subordination. Mexico deserves respect—we are equal nations.”
China Enters the Trade Battle
In a separate move, Trump also increased tariffs on Chinese imports by another 10% on Monday, doubling down on the previous 10% hike that took effect in early February. The administration cited China’s “failure” to cooperate in efforts to curb fentanyl trafficking as justification.
China, however, isn’t backing down. Its Ministry of Finance responded by announcing new tariffs on U.S. agricultural goods, effective March 10. The country will impose an extra 15% tariff on American chicken, wheat, corn, and cotton, along with a 10% tariff on pork, beef, sorghum, soybeans, seafood, fruits, vegetables, and dairy products.
These new duties follow February’s tariff hikes on U.S. cars, equipment, and energy imports, signaling that tensions between the two nations continue to escalate. In a press conference, China’s Foreign Ministry spokesperson Lin Jian issued a strong statement: “The U.S. wants a tariff war, a trade war—any kind of war? We are ready.” He went on to dismiss the fentanyl issue as “a flimsy excuse” for increased tariffs on Chinese goods.
What’s Next? More Tariffs Incoming?
Over the past month, the U.S. has also slapped 25% tariffs on steel and aluminum imports, and Trump has hinted that similar duties on cars, semiconductors, and pharmaceuticals could be on the horizon. These actions might coincide with the trade policy review Trump initiated on his first day back in office, as well as his April 2 deadline for implementing universal reciprocal tariffs.
With tensions escalating across North America and China, global markets are bracing for further economic fallout. The only question now—who will blink first?
