No negotiation accepted! Trump announced that a 25% tariff will be imposed on Canada and Mexico starting March 4th.

U.S. President Trump announced that the United States will officially impose a 25% import tariff on Mexico and Canada on March 4th, and will not accept any exemptions or negotiation extensions. "There is no room for negotiation with Mexico and Canada," Trump said at a press conference on Monday. "The tariff will take effect tomorrow." This long-promised tariff policy will be the most extensive during the Trump administration, affecting approximately $1.5 trillion of imports into the United States each year. All goods imported from Canada and Mexico will be subject to a 25% tariff, with the only exception being Canadian energy products taxed at a rate of 10%. In addition, Trump also announced that tariffs on Chinese imports will double to 20%. Trump administration officials had previously sent conflicting signals regarding the final decision on North American trading partners, emphasizing that the decision ultimately depends on Trump's assessment of the progress of negotiations. A month ago, Trump issued a series of trade threats, stating that the strong performance of the U.S. economy gives it an advantage in negotiations. However, recent data has shown that due to the uncertainty of the trade war, U.S. economic growth has shown signs of fatigue. A private survey released on Monday showed that U.S. manufacturing activity is near a standstill, with orders and employment both declining, while material costs have surged to their highest levels since June 2022. Following the release of the data, the U.S. stock market experienced a brief rebound followed by volatility, while the bond market showed some gains. Meanwhile, global stock markets have outperformed the U.S. stock market in early 2025, reflecting investor concerns about U.S. trade policies. The Trump administration revised a previous executive order late Sunday, postponing a regulation regarding tax-exempt shipping and providing time to develop a new tariff mechanism for low-value goods. Mexican President Lopez Obrador stated at a press conference on Monday that the Mexican government will wait for Trump's final decision before taking retaliatory measures, and Canada has adopted a similar stance. According to reports, China is considering imposing retaliatory tariffs on U.S. products, such as Shenzhen Agricultural Power Group and food, in response to the Trump administration's new tariff policy. The new tariff measures may not only provide partial funding for Trump's planned tax cuts, but may also weaken the Federal Reserve's efforts to control inflation and disrupt North American supply chains, especially in the automotive industry. In addition, these tariff measures may face legal challenges, as they may violate the renegotiated North American Free Trade Agreement (USMCA) during Trump's first term. In the case of Canada, the 25% tariff covers nearly all goods, with only Canadian oil and natural gas products enjoying a lower 10% rate. Canadian Prime Minister Trudeau has threatened to take retaliatory measures, including taxing oil exports, to make American consumers feel the "pain" of Trump's trade war. In October last year, the Canadian government imposed a 100% tariff on electric vehicles made in China, as well as a 25% tariff on some Chinese steel and aluminum products. Trudeau said, "We are still working hard to prevent the tariffs from being implemented, but if they come into effect on Tuesday, Canada will respond strongly." Mexican President Lopez Obrador is considering imposing new tariffs on Chinese goods in exchange for U.S. concessions on tariffs against Mexico. U.S. Treasury Secretary Yellen welcomed this and encouraged Mexico and Canada to take similar actions. Negotiations between the U.S. and Mexico on security and drug cooperation have made progress, but they have not reached a consensus on trade and tariff issues. Last Thursday, the Mexican government handed over 29 suspects involved in crimes such as drug trafficking to the United States in hopes of securing a compromise from the Trump administration on tariffs. Trump plans to implement "reciprocal tariffs" by April 1 based on factors such as trade barriers and tax systems in other countries, adjusting U.S. import tariffs according to the levels of tariffs in those countries. However, it is not yet clear if this calculation method will consider the tariffs already imposed on Mexico and Canada. In addition, Trump plans to impose a 25% tariff on steel and aluminum products on March 12, which will have a significant impact on Canada and Mexico. He also plans to implement industry-specific tariffs on cars, semiconductor chips, and pharmaceutical products starting April 2, and has initiated a new tariff investigation into copper products. At the same time, Trump has ordered the Commerce Department to investigate the impact of timber imports on national security, potentially paving the way for new tariffs on Canadian timber products in the future. Canada and Mexico have been trying to avoid tariffs, but options are running out. The Canadian government has appointed a special official to address the fentanyl issue and has strengthened border security measures to meet Trump's demands. However, Trump believes these measures are still not enough. Since October 2021, the U.S. has seized only about 70 pounds (31.8 kg) of fentanyl at the U.S.-Canada border, while Canada has implemented strict import restrictions on China. Therefore, Canada lacks more leverage in negotiations. It is expected that U.S. trading partners will take retaliatory measures. Canada plans to impose counter-tariffs on $300 billion Canadian dollars (approximately $207.5 billion U.S. dollars) worth of U.S. products and to impose additional tariffs on $125 billion Canadian dollars (approximately $86.4 billion U.S. dollars) worth of U.S. products within three weeks. Mexico has not yet announced specific retaliatory measures. China has also warned that the U.S. should focus on domestic drug demand and strengthen enforcement, rather than unilaterally impose tariffs. The Chinese Embassy in the U.S. said in a statement, "The U.S. unilateral tariff policy blatantly violates WTO rules and belongs to typical unilateralism and trade protectionism."