Trump Says 25% Canada, Mexico Tariffs ‘Going Forward’

By Ryan Hanrahan

Reuters’ David Lawder and Andrea Shalal reported that “President Donald Trump said on Monday that tariffs on Canadian and Mexican imports are ‘on time and on schedule’ despite efforts by the countries to beef up border security and halt the flow of fentanyl into the U.S. ahead of a March 4 deadline. ‘The tariffs are going forward on time, on schedule,’ Trump told a joint news conference with French President Emmanuel Macron. He had been asked whether Canada and Mexico had done enough to avoid the punishing 25% U.S. duties.”

“Many had hoped the top two U.S. trading partners could persuade Trump’s administration to further delay tariffs that would apply to over $918 billion worth of U.S. imports from the two countries, from autos to energy. This could wreak havoc on the integrated North American economy, with the automotive sector hit particularly hard,” Lawder and Shalal reported. “Trump did not specifically mention the March 4 deadline. He later referred to his desire for ‘reciprocal’ tariffs to match the duty rates and offset the trade barriers of all countries.”

The Associated Press’ Josh Boak and Fabiola Sanchez reported Monday that “Trump has claimed that other countries charge unfair import taxes that have come at the expense of domestic manufacturing and jobs. His near constant threats of tariffs have already raised concerns among businesses and consumers about an economic slowdown and accelerating inflation. But Trump claims that the import taxes would ultimately generate revenues to reduce the federal budget deficit and new jobs for workers.”

Potential Impacts on U.S. Agricultural Trade

When the 25% tariffs on Mexico and Canada were first implemented at the beginning of February, Progressive Farmer’s Chris Clayton reported that the tariffs would likely impact agricultural trade because Canada, Mexico, and China are “the three biggest markets for U.S. agricultural commodities.”

“For Canada and Mexico, the moves essentially scrap the U.S-Mexico-Canada Agreement (USMCA) that Trump signed in his first term. That agreement lowered tariffs on products, including zero tariffs on most agricultural products flowing between the three countries,” Clayton reported. “Through November, U.S. agricultural sales to the three countries accounted for $75.9 billion for 2024.”

At the beginning of February, “Canadian Prime Minister Justin Trudeau announced 25% retaliatory tariffs on more than $106 billion (150 billion Canadian dollars) in U.S. products. Initially, Canada will start with $20.6 billion (CA$30 billion) on Tuesday and bump it up to full tariffs by the end of the month,” Clayton reported. “…Trudeau and Mexican President Claudia Scheinbaum had spoken about collaborating on their responses. The Wall Street Journal reported Mexico is considering ‘carousel retaliation’ that would shift to different products, but have political impact, including ‘hitting sectors such as agriculture that are likely to lobby Congress.’ Canada and Mexico also focused their tariffs on U.S. products coming from Republican states.”

Agri-Pulse’s Oliver Ward reported at the time that Canada’s retaliatory tariffs were targeting items such as “American ‘beer, wine, and bourbon; fruits and fruit juices, including orange juice; along with vegetables.’”

Mexico’s retaliatory tariffs, Reuters’ David Alire Garcia and Ana Isabel Martinez reported at the time, were likely to be “5–20%, on pork, cheese, fresh produce, manufactured steel, and aluminum, according to sources familiar with the matter.”

Canada, Mexico Say They’ve Made Border Security Progress

Lawder and Shalal reported that “Canada and Mexico have taken steps to beef up border security, which bought them about a month’s reprieve from Trump’s earlier Feb. 1 deadline to impose the tariffs, based on a national emergency declaration.”

“On Thursday, Mexican Economy Minister Marcelo Ebrard said he had a ‘constructive dialogue’ during a meeting with Trump’s top trade officials,” Lawder and Shalal reported. “Ebrard said in a post on X that the ‘joint work’ on U.S. trade matters starts on Monday. Mexico has begun deploying as many as 10,000 national guard troops to its northern border, as part of the agreement that Mexican President Claudia Sheinbaum said also called on the U.S. to work to stop the flow of firearms into Mexico.”

“Canada this month created a new fentanyl czar to coordinate the fight against smuggling of the deadly opioid, appointing senior intelligence official Kevin Brosseau to the post,” Lawder and Shalal reported. “Ottawa also has reclassified drug cartels as terrorist entities and has deployed drones, helicopters, and other surveillance technologies on the vast northern U.S. border.”

Trump Says 25% Canada, Mexico Tariffs ‘Going Forward’ was originally published by Farmdoc.