Washington — The United States imposed 25% tariffs on nearly all goods imported from Mexico and Canada Tuesday, after taking a month for aides to negotiate a potential reprieve.
The tariffs went into effect at 12:01 a.m., hours before President Trump’s first address to a joint session of Congress of his second term.
The U.S. also imposed 10% tariffs on imports from China on top of those already in place, bringing them to 20%. And 25% tariffs on steel and aluminum imports are set to kick in March 12.
China responded immediately, announcing it would put additional tariffs of up to 15% on imports of key U.S. farm products, including chicken, pork, soy and beef. They’re slated to take effect March 10 and would bring total tariffs by China on U.S. goods to 20%.
There was no immediate response to the hiked U.S. tariffs from Mexico or Canada.
Economists warn that the new tariffs could lead to higher prices for American consumers and even a trade war among major U.S. trading partners.
Investors reacted negatively to Monday’s news that the tariffs on Mexico and Canada would take effect as planned. Major U.S. indices fell roughly 2% on the day.
On Monday, a reporter asked the president if there was room left for Canada and Mexico to arrive at a deal before the deadline.
“No room left for Mexico or for Canada, no,” Mr. Trump responded. “The tariffs, they’re all set, they go into effect tomorrow.”
Mr. Trump has wielded tariffs as an instrument to extract concessions from foreign governments and encourage manufacturing in the U.S.
“It’s a very powerful weapon that politicians haven’t used because they were either dishonest, stupid, or paid off in some other form,” he said at the White House, after announcing a $100 billion investment by a Taiwanese semiconductor company. “And now we’re using them.”
The tariffs came in response to what Mr. Trump views as Mexico and Canada’s irresponsible handling of the southern and northern borders, including fentanyl entering the United States. Both countries won last-minute delays on the tariffs in February after Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau vowed to do more to crack down on fentanyl and illegal border crossings.