Trump imposes universal tariffs on top US trading partners

Both countries took steps during that time to meet Trump’s demands, including sending 10,000 troops each to their respective borders with the US to fight drug and human trafficking. Mexico also turned over drug cartel members to the US.

Well, that month-long reprieve is now up, but Trump doesn’t believe either country has done enough.

A fact sheet put out by the White House on Tuesday said the president gave both countries “ample opportunity” to address cartel activity and drug trafficking. But “they have failed to adequately address the situation.”

“Both nations’ failure to arrest traffickers, seize drugs, or coordinate with U.S. law enforcement constitutes an unusual and extraordinary threat to America’s security — demanding IEEPA action to force accountability and protect American lives,” the White House stated.

And so, the tariffs on imports of all products from America’s top trading partners began on Tuesday, March 4 at 12:01 a.m. ET. The 25% tax applies to all goods from Canada and Mexico, with one exception: Canadian “energy and energy resources” will only be subject to a 10% duty. US importers are responsible for paying the duties.

The administration on Tuesday also imposed a 20% general tariff on all imports from China, number three on US’ list of top trading partners.

Many of Trump’s supporters have said the tariff threats are a negotiating tactic of the ruthless leader. With these new tariffs now officially on the books, the unilateral action by the president looks to also be a part of his stated America First Investment Policy to attract foreign investment to the US.

The policy states the Trump “administration will make the United States the world’s greatest destination for investment dollars, to the benefit of all of us.”

“IF COMPANIES MOVE TO THE UNITED STATES, THERE ARE NO TARIFFS!!!” Trump shouted on Truth Social Tuesday morning.

Canada fights back

Canada is fed up with Trump’s bullying and is stepping up to fight in the trade war instigated by Trump.

“The United States launched a trade war against Canada, their closest partner and ally, their closest friend,” Canadian Prime Minister Justin Trudeau stated in a speech Tuesday. “Canadians are reasonable, and we are polite, but we will not back down from a fight, not when our country and the well-being of everyone in it is at stake.”

Trudeau announced Canada will be implementing a retaliatory 25% tariff on $155 billion worth of American goods. The levies will begin immediately on $30 billion worth of American goods and in 21 days on the remaining $125 billion worth.

Included on the list of American products facing immediate retaliatory tariffs are steel-intensive appliances including refrigerators, washing machines, dishwashers, stoves, and ranges.

Canada on Tuesday reiterated that steel, aluminum, automobiles, and aerospace products are among the US products that will face tariffs in three weeks’ time if Trump’s tariffs are still in place.

Mexico plans retaliation

Mexico is also planning to respond with tariffs on American-made goods.

On Tuesday, President Claudia Sheinbaum said she would announce this coming Sunday the products Mexico will target with its retaliatory tariffs, according to a report from the Associated Press.

“There is no motive or reason, nor justification that supports this decision that will affect our people and our nations,” Sheinbaum stated.

“It’s inconceivable that they don’t think about the damage this is going to cause to United States citizens and businesses with the increase in prices for things produced in our country,” the AP reported her as saying. “Also the damage it will cause by stopping job creation in both countries. No one wins with this decision.”

Coming next week

Don’t forget that Trump’s reinstatement of the Section 232 tariffs on steel and aluminum imports without carveouts or exemptions is slated for Wednesday, March 12.

Steel imports from Canada and Mexico were previously exempt from the 25% Section 232 tariffs, but Trump is insistent on no exemptions this time.

Combined with the universal tariff that began today, steel imported into the US from its next-door neighbors could face a 50% tariff starting next week. Remember, the US importer is responsible for paying the levies.

The steel trade between the three nations is significant. In 2024, the US imported over 6.5 million short tons of Canadian steel and 3.5 million tons of Mexican steel, according to US import data. Meanwhile, it exported nearly 3.8 million st to Canada and over 4.8 million st to Mexico.

The steel products most sourced from Canada last year were: hot-rolled sheet and hot-dipped galvanized sheet, with over 1 million st of each imported from Canada; coiled plate, with over 66,000 st; and cold-rolled sheet, with over 60,000 st.

The top steel products imported from Mexico last year were: slabs (1.17 million st last year), galvanized sheet (308,000 st), other metallic coated sheet (291,000 st), coiled plate (127,000 st), and CR sheet (115,000 st).