Trump stated that tariffs on Canada and Mexico will be implemented as planned. U.S. officials revealed that the final decision has not been made yet.

date
25/02/2025
avatar
GMT Eight
President Trump of the United States has stated on Monday that the scheduled tariff measures against Canada and Mexico next month will proceed as planned and are "progressing rapidly." However, a U.S. official later anonymously stated that the final decision on the tariff plan has not yet been determined. During a joint press conference with French President Macron, Trump was asked whether the tariffs would officially be implemented on March 4th. Trump responded unequivocally, stating, "The tariffs will move forward on time and as planned." Canada and Mexico have recently implemented new border control measures in an attempt to avoid the tariffs. Trump had previously stated that he is pushing for these tariffs to curb illegal immigration and drug trafficking, particularly the cross-border influx of drugs like fentanyl. However, after Trump's remarks, an anonymous U.S. government official told the media that the fate of the 25% special tariffs on Canada and Mexico, linked to border security requirements, remains undecided. The official added that Trump's "reciprocal tariffs" plan will be officially implemented in April, covering all countries, including Canada and Mexico. When answering questions, Trump also emphasized his plan to push for reciprocal tariffs. The U.S. Department of Commerce is currently calculating the tariffs and non-tariff barriers set by different countries on U.S. products and plans to impose reciprocal tariffs in the same manner. "We want reciprocity, if other countries tax us, we tax them, it's that simple. This will be very advantageous for our country, the U.S. will again become very fluid and wealthy." Trump has rapidly rolled out a series of tariff policies in his second term, attempting to reshape the global trade system and encourage the reshoring of manufacturing to the U.S. He believes that the current global trade rules are unfair to the U.S. and hopes to use tariff policies to attract more companies to invest in the U.S. domestically. Currently, Trump has imposed a 10% tariff on Chinese imports, and tariffs on steel and aluminum products will also take effect in March. The promised reciprocal tariffs may be implemented as early as April, but the specific tax rates will be calculated based on each country's trade policies. In addition, Trump plans to impose approximately 25% import tariffs on cars, lumber, semiconductors, and pharmaceutical products, with the earliest announcement of related measures expected on April 2. Trump has claimed multiple times that his tariff policy has promoted domestic investment in the U.S. and will become an important source of revenue. He hopes to use tariff revenue to push Congress to pass a bill expanding tax cuts. However, many mainstream economists warn that tariffs may exacerbate inflationary pressures and impact U.S. economic growth. In addition, they question whether the revenue from tariffs may fall far below Trump and his allies' expectations. The tariff measures against Canada and Mexico may severely impact the North American supply chain. Key industries such as automobiles and energy will be directly affected, and several regions in the U.S., especially the Pacific Northwest and Northeast, heavily rely on electricity and natural gas imports from Canada. If the tariffs are implemented, Canadian energy products will face a 10% import tariff, which could lead to an increase in energy costs for American consumers. Trump first proposed imposing tariffs on Canada and Mexico during the presidential transition period, accusing the two countries of not adequately safeguarding U.S. border security. In response to pressure, the Canadian government has strengthened measures to combat drug trafficking and taken a series of actions to appease the Trump administration. Canadian Prime Minister Trudeau appointed a "Fentanyl Affairs Commissioner" specifically responsible for preventing drugs like fentanyl from flowing into the U.S. through Canada. In addition, the Canadian government has expanded law enforcement powers, intensified efforts against drug trafficking groups, hoping to show the Trump administration that Canada is taking proactive measures to address the issue of drug smuggling.

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