Former U.S. President Donald Trump has announced that his new tariffs on goods from Mexico, Canada, and China will start on March 4.
He is increasing taxes on imports because he believes these countries are not doing enough to stop deadly drugs, especially fentanyl, from entering the U.S., Reuters reports.
According to Reuters, Trump will impose a 25% tariff on Mexican and Canadian goods and an extra 10% tariff on Chinese imports.
This new tax on China is in addition to a 10% tariff he introduced earlier in February, bringing the total to 20%. He says he made this decision because fentanyl is still coming into the U.S. in large amounts.
When asked if Mexico and Canada were doing enough to stop fentanyl shipments, Trump said, “No, not on drugs,” Reuters notes. A White House official told Reuters that while progress has been made in controlling illegal immigration, the fentanyl problem remains a major concern.
Despite these claims, U.S. officials say that fentanyl seizures at the southern border actually dropped by 50% in January 2025 compared to a year earlier, but authorities still worry that there’s enough fentanyl entering the U.S. to kill millions, Reuters explains. Meanwhile, Reuters reports that Mexico is preparing to extradite drug lord Rafael Caro Quintero, who was convicted of killing a U.S. agent in 1985 but later returned to drug trafficking.
Trump’s Freeze on Foreign Aid Is Hurting Anti-Drug Efforts
Trump’s decision to freeze foreign aid is making it harder to fight drug smuggling, Reuters highlights. The aid freeze has delayed a United Nations program that was supposed to help Mexico’s navy stop fentanyl ingredients from entering its ports. U.S. training for Mexican authorities and donations of drug-sniffing dogs have also been put on hold. However, Reuters mentions that the U.S. recently released $8 million to continue some anti-drug efforts in Mexico.
At the same time, U.S. Customs and Border Protection has postponed a ban on duty-free, low-value shipments from Mexico, Canada, and China until they can improve screening procedures, Reuters states.
More Tariffs Could Hurt Both the U.S. and China
Trump’s tariff strategy follows his earlier trade war tactics, where he kept increasing tariffs on China until they agreed to negotiate, Reuters recalls. So far, China has responded with limited tariffs on U.S. energy and farm products. However, if Trump’s tariffs go up to 20% on all Chinese goods, Beijing may retaliate more aggressively. Since China’s economy is already struggling, and the U.S. is facing inflation and high interest rates, more tariffs could hurt both countries, Reuters warns.
China has sent a letter to U.S. trade officials, saying both countries should resolve their trade disputes through fair discussions, Reuters notes. Trump also clarified that his tariff plan will not be delayed until April, as he had previously hinted.
Mexico and Canada Push Back Against Tariffs
Officials from Mexico and Canada are in Washington this week to negotiate with Trump’s administration in hopes of avoiding the tariffs, which could harm North America’s tightly connected economy, Reuters explains.
Mexican Economy Minister Marcelo Ebrard will meet with U.S. trade officials to discuss possible solutions. A top Mexican official, Vidal Llerenas, said Mexico might introduce its own trade measures, including tariffs on cheap Chinese imports, Reuters reports.
In Canada, Public Safety Minister David McGuinty insists that Canada has already tightened border security and is working hard to stop drug smuggling.
He told Reuters that Canada has met all U.S. standards for border security. The Canada Border Services Agency has also launched a national operation to stop illegal drugs, especially fentanyl, from entering and leaving the country, Reuters adds.
As the situation unfolds, Trump’s tough stance on tariffs is sparking tension with key trading partners, and his critics worry that these economic policies could do more harm than good, Reuters concludes.