U.S. President Donald Trump is making headlines once again with his plans to impose new tariffs on Canadian and Mexican exports to the United States. However, in a recent interview, Commerce Secretary Howard Lutnick hinted that the tariffs may not be as high as initially announced.
During an appearance on the Fox News show “Sunday Morning Futures,” Lutnick stated that the situation is still fluid and that the exact tariffs will be left for President Trump and his team to negotiate. This is the first indication that the Trump administration may not impose the full 25% tariffs on all goods from Mexico and non-energy imports from Canada, as previously announced.
The reason behind these tariffs is the Trump administration’s belief that Mexico and Canada are not doing enough to stop the flow of illicit drugs into the United States. Lutnick acknowledged that both countries have made efforts to secure their borders, but the deadly drug fentanyl continues to enter the country.
The initial announcement of the tariffs came a month ago, but their effective date was delayed after Mexican President Claudia Sheinbaum promised to send 10,000 troops to the northern border with the U.S. to curb drug trafficking. Canadian Prime Minister Justin Trudeau also pledged to name a “fentanyl czar” to address the issue.
In addition to the tariffs on Mexico and Canada, Trump is also doubling the 10% tariffs he imposed on Chinese goods in February. The president has repeatedly blamed China for the influx of fentanyl into the U.S.
In a statement on his social media platform, Trump said, “Drugs are still pouring into our country from Mexico and Canada at very high and unacceptable levels. A large percentage of these drugs, much of them in the form of fentanyl, are made in, and supplied by, China.”
Sheinbaum, whose country heavily relies on trade with the U.S., expressed hope for a deal with the United States before the new tariffs take effect. However, she also warned that Mexico could impose retaliatory tariffs on U.S. products if necessary.
When Trump first announced the tariffs on Canadian imports in February, Trudeau called them “entirely unjustified” and promised to impose a 25% tax on U.S. steel and aluminum products exported to Canada. Canada is the top exporter of both metals to the U.S.
Economists have raised concerns that these tariffs will lead to higher prices for consumers and businesses. Mexico, Canada, and China are the top three trading partners with the U.S., with the European Union being the largest trading partner collectively.
During his first Cabinet meeting of his new term, Trump also mentioned the possibility of imposing tariffs on EU exports to the U.S. He accused the EU of being formed in 1993 to “screw the United States” economically.
In response to Trump’s statements, the EU vowed to respond “firmly and immediately” to any “unjustified” trade barriers. They also threatened to impose their own tariffs on U.S. imports if the U.S. proceeds with their tariffs.
Trump has also hinted at imposing tariffs on automobile imports, lumber, pharmaceutical products, and other goods. However, many economists have warned that these tariffs could lead to inflation in the U.S.
Despite these concerns, Trump believes that tariffs will ultimately benefit the U.S. economy, the largest in the world. He sees them as an incentive for foreign companies to move their manufacturing to the U.S. to avoid the tariffs on their products.
However, the main focus of these tariffs is to address the issue of drug trafficking into the U.S. In his social media post, Trump stated, “More than 100,000 people died last year due to the distribution of these dangerous and highly addictive poisons. Millions of people have died over the last two decades. The families of the victims are devastated and, in many instances, virtually destroyed.”
He continued, “We cannot allow this scourge to continue to harm the USA, and therefore, until it stops, or is seriously limited, the proposed tariffs scheduled to go into effect on March 4th will, indeed, go into effect as scheduled.”
In conclusion, the Trump administration is set to impose tariffs on Mexican and Canadian exports to the U.S. However, there is a possibility that the tariffs may not be as high as initially announced. These tariffs are part of the administration’s efforts to address the issue of drug trafficking into the U.S. and to protect American industries. The situation is still developing
