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Trump announced 25% tariffs on Mexico and Canada, set for March 4, citing fentanyl smuggling concerns. He also raised tariffs on Chinese imports to 20%. While talks with North American officials continue, the new trade measures could disrupt economic ties and escalate tensions with China.
President Donald Trump said Thursday that his proposed 25% tariffs on Mexican and Canadian imports will take effect March 4, along with an additional 10% duty on Chinese goods. He cited continued fentanyl smuggling into the United States as the reason for the measures.
Speaking from the Oval Office, Trump said the tariff on Chinese imports would be in addition to the 10% duty imposed on Feb. 4 over the fentanyl crisis, bringing the total tariff to 20%.
Trump first announced the tariffs on his Truth Social account, saying fentanyl shipments into the U.S. remained at “very high and unacceptable levels.”
When asked whether Canada and Mexico had made enough progress in curbing fentanyl trafficking, Trump said, “I don’t see that at all. No, not on drugs.”
The White House said discussions with Canada, Mexico, and China are ongoing. However, Trump’s freeze on U.S. foreign aid has slowed efforts to combat fentanyl smuggling.
The freeze delayed U.S. training programs for Mexican authorities and stalled the expansion of a United Nations initiative aimed at improving cargo screening in Mexican ports, according to Reuters.
Meanwhile, U.S. Customs and Border Protection has postponed a ban on duty-free, low-value package shipments from China, Canada, and Mexico until stricter screening measures are in place.
The tariffs mirror Trump’s first-term trade war strategy with China, where he steadily increased duties until Beijing engaged in negotiations. So far, Chinese President Xi Jinping has responded with a limited 10% retaliatory tariff on U.S. energy and farm equipment.
If tariffs on Chinese imports reach 20% across the board, Beijing could impose stronger countermeasures. The U.S. imported $439 billion in goods from China in 2024, many of which already faced duties of up to 25% from Trump’s previous trade actions.
Economists warn that further tariff hikes could destabilize both economies. China is struggling with a property crisis and weak domestic demand, while the U.S. continues to battle inflation and high interest rates.
In a letter to U.S. Trade Representative Jamieson Greer, China urged “equal dialogue and consultation” to resolve trade disputes.
In an effort to avoid the tariffs, Canadian and Mexican officials met with U.S. counterparts in Washington on Thursday and Friday. Mexican Economy Minister Marcelo Ebrard was set to meet Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer to discuss possible compromises.
Mexican officials have suggested countermeasures, including expanding tariffs on cheap Chinese imports.
In Canada, Public Safety Minister David McGuinty defended the country’s anti-smuggling efforts, saying, “The evidence is irrefutable—progress is being made.”
The Canada Border Services Agency announced a new initiative to crack down on illegal contraband, focusing on fentanyl and other synthetic drugs.
Despite diplomatic efforts, Trump said the tariffs will move forward as planned on March 4, unless there is significant progress.
The U.S. has approved the sale of 500 Patriot PAC-3 missiles to Ukraine in a deal worth an estimated $2.1 billion, but Kyiv could face years of delays before receiving the weapons it urgently needs to defend against intensifying Russian attacks.
Iranian Supreme Leader Ayatollah Khamenei has ordered Iran's armed forces to respond to any threat immediately and without geographical limits in statements posted to social media platforms on Saturday (31 October).
Demonstrators carrying Iranian flags and placards supporting the hijab gathered outside the Azerbaijani Embassy in London.
A Chinese-made AI chip has matched Nvidia’s H200 in tests conducted by its developer, marking a potential breakthrough in China’s efforts to reduce its dependence on foreign technology.
A hacking group linked to North Korea is widely believed to be behind the theft of $6.3 billion from cryptocurrency giant Binance, a cyberattack that experts describe as the largest cryptocurrency heist on record.
Police were deployed across Paris on Saturday, as a curfew was set to take effect in the Republique and Châtelet-Les Halles areas from 11pm Saturday until 6am Sunday (1 November).
A drone strike hit a power station in northern Sudan early Sunday (1 November), sparking a fire and triggering loud explosions, witnesses said.
Gen Z protests swept 34 German cities on Saturday (31 October) over education and living costs. Violence erupted in Frankfurt, where shops were looted and police reported Molotov cocktail attacks.
Iran designated Britain's Royal Navy and Royal Air Force as terrorist organisations on Sunday, (1 November), and classified the country's foreign intelligence agency, MI6, as a hostile group, according to a statement from the Iranian Foreign Ministry.
Thousands protested in Albania's capital, Tirana, on Saturday (31 October), demanding Prime Minister Edi Rama's resignation over perceived corruption allegations and dissatisfaction with the government over a lack of jobs and poor education standards.
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