It’s official—Trump’s tariffs on Canada and Mexico have now taken effect.
In what the US president says is being tied to the threat posed by illegal aliens and drugs, including fentanyl, a 25% tariff has been implemented on imports from Canada and Mexico, with certain assets being taxed differently, such as Canadian energy resources, including natural gas and oil. Those will receive a 10% tariff. Trump recently reinstated a 25% steel import tax, along with increasing the tariff rate on aluminum from 10% to 25%.
Prior Pharma Commerce tariff coverage
Meanwhile, China’s tariff—which had originally involved a 10% tax on goods—is has now doubled to 20%.
In response, Canadian Prime Minister Justin Trudeau has noted that the country would enforce tariffs on more than $100 billion of American goods over the next 21 days, while Mexico will also enact a tariff on US products, with specifics on the included goods to set to be announced this Sunday, per AP.1,2
And earlier today, China announced retaliatory tariffs of their own on US farm exports, which will take effect by March 10, while products that are already in transit will receive an April 12 exemption.3
They include that:
- The tax on beef, pork, dairy, fruit, seafood, sorghum, soybeans, and vegetables will rise by 10%.
- Tariffs on corn, cotton, wheat, and chicken grown in the United States will be increase by 15%.
As of last week, Trump said that the April 2 reciprocal tariff—where the United States would match the tax rates of what trading partners also charge on imports—which reportedly “will remain in full force and effect.”
References
1. Boak J, Wiseman P, Gillies R. US tariffs on Canada and Mexico take effect, as China takes aim at US farm exports. AP. March 4, 2025. Accessed March 4, 2025. https://apnews.com/article/trump-tariffs-canada-mexico-china-643086a6dc7ff716d876b3c83e3255b0
2. Verza M. Mexico to impose retaliatory tariffs on US following China and Canada as trade war heats up. AP. March 4, 2025. Accessed March 4, 2025. https://apnews.com/article/trade-war-mexico-trump-9cefdded035a0b35e700a7ba0bfc34b4
3. China slaps extra tariffs of up to 15% on imports of major US farm exports and adds trade limits. AP. March 4, 2025. Accessed March 4, 2025. https://apnews.com/article/china-us-tariffs-farm-soy-trump-7442b02ac829347f0d4fc6ad0955d368
