Trump Confirms Tariffs on Mexico, Canada to Start March 4, Adds Extra 10% on China

President Donald Trump announced Thursday that his proposed tariffs on Mexico and Canada will go into effect on March 4, while China will face an additional 10% tariff on the same date. The move, outlined in a post on Truth Social, marks a significant escalation in the administration’s trade policies.

The 25% tariffs on imports from Mexico and Canada were initially paused on February 3 for one month, but Trump confirmed that they would resume as scheduled, citing concerns over illicit drug trafficking from the two neighboring countries.

"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 Fourth will, indeed, go into effect," Trump wrote.

Additionally, Trump stated that China, which is already subject to 10% tariffs, will see those duties double to 20% starting March 4.

White House Confusion Over Tariff Timeline

Trump’s announcement appeared to contradict earlier statements made by White House National Economic Council Director Kevin Hassett during an interview on CNBC’s "Squawk Box."

Hassett had suggested that the president would decide on tariff policy for all countries only after reviewing a trade study scheduled for release on April 1. He also indicated that the decision regarding Mexico and Canada would likely be aligned with broader tariff policy changes.

However, Trump’s post made it clear that the tariffs on Mexico, Canada, and China will proceed as planned, while the April 2 reciprocal tariff deadline remains unchanged.

Stock Market Reaction and Global Trade Implications

Following Trump’s announcement, Dow Jones Industrial Average futures dipped slightly before recovering at market open. Investors and trade analysts are closely watching the impact of these tariffs on North American and Chinese trade relations.

• Mexico and Canada: The reinstatement of 25% tariffs is expected to strain trade relations with two of the United States’ largest trading partners. Both countries had previously pledged to enhance border security and limit illicit drug flows to address Trump’s concerns.
• China: The additional 10% tariff hike brings the total U.S. tariffs on Chinese imports to 20%, further intensifying the ongoing U.S.-China trade tensions.

Steel and Aluminum Tariffs Set for March 12

In addition to the March 4 tariffs, Trump has also ordered global 25% tariffs on steel and aluminum imports, scheduled to take effect on March 12.

Furthermore, on February 13, Trump signed a presidential memorandum authorizing reciprocal tariffs on foreign nations that impose duties on U.S. imports. His plan also targets other trade policies, such as value-added taxes, which the administration considers unfair trade practices.

As Trump’s second-term trade agenda unfolds, business leaders and global markets are bracing for potential economic impacts, while Congress and industry groups weigh in on the effectiveness of these tariff strategies.