US tariffs against Canada and Mexico will go ahead on Tuesday but their level will be decided by Donald Trump, the US commerce secretary has said. The US president has threatened to impose 25% tariffs – which are a tax on imports – on his two neighbours on 4 March, in response to what he says is an unacceptable flow of illegal drugs and migrants into the US.
The US Commerce Secretary Howard Lutnick said on Sunday the tariffs would happen as planned but the exact details will depend on negotiations.
A 10% tariff on Chinese imports is also expected to be implemented in response to US accusations that Beijing is not doing enough to stop the flow of fentanyl into the US.
This means that if brought into effect, Chinese exports to the US will face a levy of at least 20%, following a 10% tariff that took effect a month ago.
Chinese state media claims leaders in Beijing have prepared a series of countermeasures to happen on the same day, raising the prospect of an all-out trade war between the world’s top two economies.
US tariffs will also apply to Mexico and Canada, with the US Commerce Secretary saying that “there are going to be tariffs on Tuesday on Mexico and Canada. Exactly what they are, we’re going to leave that for the president and his team to negotiate.”
Canada has repeatedly said tariffs will harm both economies but added that it will defend itself if they happen.
The Canada Border Services Agency says it has been “surging” its efforts to tackle fentanyl crossing into the US. Only 1% of fentanyl seized in the US is thought to come from Canada, according to US data.
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