Trump says Mexico, Canada tariffs to take effect on March 4

WASHINGTON - US President Donald Trump said 25 per cent tariffs on Canada and Mexico are on track to kick in on March 4, and said he would impose an additional 10 per cent tax on Chinese imports.

Mr Trump had paused the sweeping duties on the US’ largest trading partners on Feb 3 for one month after Canadian and Mexican leaders announced new border security measures. But he recently sowed confusion about whether they would take effect once the grace period ended.

Mr Trump said on Feb 27 in a social media post that drugs from the country’s North American neighbours are still entering “at very high and unacceptable levels”, with a large percentage of them the deadly opioid fentanyl.

“We cannot allow this scourge to continue to harm the USA, and therefore, until it stops, or is seriously limited, the proposed tariffs scheduled to go into effect on March 4 will, indeed, go into effect, as scheduled,” he wrote. “China will likewise be charged an additional 10 per cent tariff on that date.”

The new tariffs on China come on top of a previous 10 per cent duty he allowed to take effect in January, when he delayed the tariffs on Canada and Mexico.

The 25 per cent tariffs apply to all Canadian and Mexican imports, except for energy products from Canada, which will be taxed at 10 per cent.

Mr Trump’s latest tariff threat rattled financial markets. The Bloomberg Dollar Index rose to a session high, with the Canadian dollar, peso and offshore renminbi all falling. S&P 500 futures pared gains and oil hit the day’s highs.

Mr Trump at a Cabinet meeting on Feb 26 appeared to conflate the North American tariffs, which are tied to drug trafficking and illegal migration, with separate reciprocal duties that his administration plans on nations worldwide.

“The April 2 reciprocal tariff date will remain in full force and effect,” the President wrote on Feb 27. BLOOMBERG