Washington: U.S. President Donald Trump declared on Monday that his administration will begin imposing 25 percent tariffs on Canadian and Mexican goods starting Tuesday. He emphasized that there is no possibility for Canada and Mexico to delay these planned duties.
According to Yonhap News Agency, Trump reiterated that “reciprocal” tariffs will commence on April 2. He has been advocating for new country-by-country tariff rates, which will align with trading partners’ tariffs and non-tariff barriers to achieve “reciprocity.” Additionally, Trump signed an executive order to double the previous 10 percent tariff on Chinese goods, accusing China of not assisting in curbing the influx of fentanyl and other drugs into the United States, which he described as an “unusual and extraordinary” threat.
Trump stated during a press event, organized to announce Taiwan Semiconductor Manufacturing Co.’s US$100 billion investment in U.S. chip manufacturing facilities, that the tariffs on Canada and Mexico would be implemented without delay. He made it clear that there is no room for a last-minute deal to prevent the tariffs’ enforcement.
Last month, Trump agreed to a 30-day postponement of the 25 percent tariffs on Canada and Mexico, with a specific provision for Canadian energy products to be taxed at a 10 percent rate. This delay was in response to Canada and Mexico’s commitment to intensify efforts to prevent drug trafficking at their borders with the U.S. Meanwhile, South Korean businesses operating in Mexico are closely monitoring the situation, concerned about the potential negative impact of U.S. tariffs on their operations.
On the same day, Trump signed the order to increase the tariff on Chinese goods by an additional 10 percent. When asked about the potential ceiling for tariffs on China, Trump mentioned that it depends on China’s currency actions and retaliation measures. The president expressed confidence that China would not retaliate significantly, stating that the U.S. has been exploited for decades.
Trump reaffirmed April 2 as the date for implementing reciprocal tariffs. The administration plans to tailor these tariffs based on trading partners’ duties, non-tariff barriers, exchange rate policies, and other factors, such as their “unfair, discriminatory or extraterritorial” taxes, including a value-added tax.
Seoul has communicated to the U.S. its priority to secure tariff exemptions. If exemptions are not possible, South Korea hopes to avoid being disadvantaged compared to other countries. Trump emphasized the need for products to be manufactured in America to avoid tariffs, as he uses tariffs to boost domestic manufacturing, reduce trade deficits, and address issues like undocumented migration and drug trafficking.
Trump described tariffs as a “very powerful weapon” to ensure America is no longer “taken advantage of.” He stated that those taking advantage of the U.S. would face consequences, asserting that tariffs punish those who exploit the country.