Trump is planning fees for Mexico and Canada on March 4, while doubled existing 10% on China

President Donald Trump intends to imposes rates on Canada and Mexico from Tuesday (March 4, 2025), in addition to doubling the 10% universal tariff perceived by imports from China.

In a social post of truth on Thursday, Mr. Trump said that illicit drugs, such as Fentanil are smuggled in the United States at “unacceptable levels” and that import taxes would force other countries to collapse.

“We cannot afford this scourge to continue to harm the US and, therefore, until it stops or is limited, the proposed tariffs scheduled to enter into force at the fourth March will enter into force, as it was scheduled,” wrote the Republican president. “Also, China will be charged an additional 10% rate at this time.”

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The perspective of escalating the tariffs has already cast the global economy in agitation, consumers expressing fears about the aggravation of inflation and car sector and other domestic producers who suffer if Trump raises import taxes. But also Mr. Trump has sometimes engaged in an aggressive position just to give the latest reprimands, previously agreeing with a 30-day suspension of Canada and Mexico rates, which had to start in February.

The threat of tariffs frightened the stock market with the S&P 500 index dropping by 1.6%on Thursday. The S&P 500 is now only 1.4% higher than it was after Mr. Trump won the elections in November, giving up almost all the winnings that the president once mentioned as an evidence of an economic rebirth.

Asked on Thursday about the fact that the rates are paid largely for consumers and importers, Mr. Trump has rejected any concern saying, “It is a myth.” It is possible for a stronger US dollar to compensate for some of the costs of the tariffs, but Trump’s statement contravenes the majority of economic modeling, given the width of his planned taxes.

Mr. Trump plans to put 25% rates for imports from Mexico and Canada, with a tax less than 10% on Canadian energy products, such as oil and electricity. The movement, obviously, in terms of drug trafficking and immigration, caused Mexico and Canada to respond to their existing efforts to address these issues. Canada created a fentanel tsar, and Mexico sent 10,000 members of the National Guard to its border with the United States.

Mexican President Claudia Sheinbaum said on Thursday that he hopes to talk to Mr. Trump after the cabinet sessions that took place in Washington this week. The Secretary for Foreign Affairs in Mexico, Juan Ramón from Fuente, was scheduled to meet with Secretary of State Marco Rubio on Thursday afternoon.

Mr. Trump, “as you know, has his way of communicating,” said Mrs. Sheinbaum. But she said that her government will remain “cool” and optimistic about an agreement that meets to avoid tariffs.

“I hope we will be able to reach an agreement, and on March 4 we can announce something else,” she said.

She said that Mexico security heads are discussing information with their American counterparts, which would allow important arrests in the US on the economic front, she said the Mexico goal is to protect the free exchange pact that has been negotiated during the first Trump administration between Mexico and the United States. This 2020 agreement, which included Canada, was an update to the North American Freedom Agreement since 1994.

Canadian Prime Minister Justin Trudeau said his country has invested over 1 billion Canadian dollars to improve border security, adding that his government ministers and officials are in Washington this week.

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“There is no emergency for the United States on the border with Canada when it comes to Fentanil and this is exactly what we demonstrate at this time,” said Mr. Trudeau at Montreal. “If the United States goes ahead and imposes rates, we have already shared the details of our plan. We have US products worth $ 30, which will be subjected to rates. And rates of $ 125 billion that will be applied three weeks later. But we don’t want to be in this position. “

Mr. Trump has imposed a 10% rate of China for its role in the manufacture of chemicals used to make fentanil, and this tax will now be doubled, according to its socialization.

On Thursday, China’s trade minister, Wang Wenao, wrote to Jamieson Greer, new -confirmed the representative of American trade, that the differences of trade should be resolved by dialogues and negotiations.

25% rates for Mexico and Canada would be up to a total tax increase in American public from between 120 billion and $ 225 billion annually, according to Jacob Jensen, commercial policy analyst at the American Action Forum, a center-right think tank. Additional rates in China could cost consumers up to $ 25 billion.

The potential for higher prices and a slower increase could create a political blow to Mr. Trump, who promised voters in last year’s presidential elections that he could quickly decrease the inflation rate, which jumped during the mandate of Democratic President Joe Biden. But, Mr. Trump campaign to impose large rates, which he intends to launch on April 2, reset to match the taxes he sets are levied by other countries for American goods.

“The date of mutual tariffs in the second April will remain in full force and effect,” said Mr. Trump as part of his new socialization position.

In an interview with The nation of newsKevin Hassett, the director of the National Economic Council of the White House, said that the progress of Mexico and Canada on the Fentanil “was not as impressive as the president hoped.” There are significant differences between Canada and Mexico on the scale of drug smuggling. The US customs agencies confiscated 43 kilograms (19.5 kilograms) of Fentanil on the Canadian border in the last budget year, compared to 21,100 pounds (9,570 kilograms) on the border with Mexican.

Mr. Hasset has stressed that mutual tariffs will be in addition to those placed on Canada and Mexico.

Mr. Trump indicated Wednesday that European countries will also face a 25% rate as part of its mutual tariffs. It also wants separate rates on vehicles, computer chips and pharmaceutical drugs that would be perceived in addition to mutual rates.

The president has already announced that he eliminates exemptions at his 2018 steel and aluminum tariffs, in addition to the planning of taxes for copper imports.

Read and | Trump’s rates could hit Canada, Mexico hard, while China seems to be prepared

The prospect of a wider commercial conflict if other nations follow their own reprisal rates is already in front of US consumers, it could undermine Trump’s promise to unleash a stronger economic growth.

The conference council reported on Tuesday that its consumers’ reliable index decreased by 7 points to a reading of 98.3. It was the largest monthly decline in August 2021, when inflationary pressures began to reverberate in the United States, because the economy recovered from the coronavirus pandemic. The average 12 -month inflation expectations jumped from 5.2% to 6% in February, the conference council said.

“There has been an increased increase in commercial and tariffs, back to an unseen level of 2019,” said Stephanie Guichard, senior economist at the Conference Council. “Especially, the comments on the current administration and his policies have dominated the answers.”