Trump’s commerce secretary, Howard Lutnick, said US tariffs on Canada and Mexico start Tuesday, but the president will decide whether to keep them at 25%.
“That’s a fluid situation,” Lutnick said on Fox News’ Sunday Morning Futures.
“There are going to be tariffs on Tuesday on Mexico and Canada. Exactly what they are, we’re going to leave that for the president and his team to negotiate.”
His remarks were the first hint that the Trump administration might not fully impose 25% tariffs on all Mexican goods and non-energy imports from Canada.
Trump’s mention of an April 2 deadline for tariffs on Canada and Mexico last week caused confusion.
He confirmed the Tuesday deadline and stated he would impose an additional 10% duty on Chinese imports, doubling the February 4 penalties.
Lutnick said Trump will increase tariffs on China Tuesday unless the country stops trafficking fentanyl into the U.S.
Pause on U.S.-Canada Tariffs
The U.S. administration has delayed the tariffs on Canadian goods that were originally set to go into effect on February 4.
The enforcement date was postponed by 30 days to March 4 in accordance with an executive directive entitled Progress on the Situation at Our Northern Border.
This action suggests a potential attempt to reduce hostilities and make space for talks between the two nations.
Canada has responded by announcing a brief halt to its planned countermeasures. The delay gives both governments a chance to find common ground and avoid a trade dispute, though neither has announced a final agreement. We anticipate more talks in the upcoming weeks, and the situation remains open.
U.S. imposes 25% Tariffs on Steel and Aluminium Imports
The U.S. has announced new tariffs of 25% on steel and aluminum imports from all countries, set to take effect on March 12, 2025. In two presidential proclamations, “Adjusting Imports of Steel Into the United States” and “Adjusting Imports of Aluminum Into the United States,” the government argues that these imports pose a national security risk.
These tariffs will stack with other measures, potentially reaching 50% on Canadian steel and 35% on Canadian aluminum by the implementation date.
U.S. reciprocal tarrifs
The U.S. administration unveiled plans for reciprocal tariffs on nations that impose tariffs on American goods. The U.S. administration outlines the idea in a letter titled “Reciprocal Trade and Tariffs” and in articles titled “Fact Sheet: President Donald J. Trump Announces ‘Fair and Reciprocal Plan’ on Trade” and “President Trump Demands Fair, Reciprocal Trade.”
After the U.S. submits trade studies on April 1, 2025, the President will set the final tariff rates.
The U.S. will now impose 25% and 10% tariffs on Canadian goods starting March 4, 2025, after a one-month delay.
On March 12, 2025, the U.S. will impose 25% tariffs on all steel and aluminum imports for national security reasons. President Trump announced that reciprocal tariffs on nations taxing U.S. imports will take effect on April 2, 2025.
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