Trump threatens to double tariffs on China and says punishing Mexico and Canada tariffs will go into effect March 4

February 27, 2025

AFP/Getty Images via CNN Newsource

Originally Published: 27 FEB 25 09:06 ET

Updated: 27 FEB 25 10:36 ET

By Elisabeth Buchwald, CNN

(CNN) — President Donald Trump said Thursday tariffs of 25% on Mexican and Canadian goods are set to take effect on March 4, while also threatening to impose an additional 10% on Chinese imports on the same date.

Mexico, China and Canada are America’s top three trading partners. Simultaneous tariffs on all three nations could lead to soaring prices for American consumers, especially at a time when inflation is already heating up.

“Drugs are still pouring into our Country from Mexico and Canada at very high and unacceptable levels,” Trump said in a post on Truth Social Thursday morning. The president has tied tariffs on America’s neighbors to illegal migration and flow of fentanyl into the country.

“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, as scheduled,” he said.

The 25% tariffs on Mexico and Canada had already been set to go into effect, but the president had not previously threatened to impose an additional 10% tariffs on Chinese imports after the initial 10% tariff on the country’s goods went into effect earlier this month.

US stocks initially reacted negatively Thursday to Trump’s comments, with futures on the Dow falling 90 points. However, all three major indexes opened higher but were volatile, with the Dow rising by 0.5%. The S&P 500 moved 0.3% higher and the Nasdaq Composite gained less than 1%.

Trump’s post comes after confusion sowed Wednesday during his first Cabinet meeting after he said “April 2nd for everything,” in response to a reporter’s question seeking clarification on when the Mexico and Canada tariffs will go into effect.

That led many to believe that the tariffs were being delayed beyond the 30-day pause that went into effect earlier this month.

Retaliation concerns

If enacted, the tariffs raise the possibility that Mexico, Canada and China could impose retaliatory tariffs against the US, which can hurt domestic industries.

After the initial 10% tariffs across all Chinese imports went into effect, Beijing responded by levying a 15% tax on American exports to China, including certain types of coal and liquefied natural gas and a 10% tariff on crude oil, agricultural machinery, large-displacement cars and pickup trucks.

Additional tariffs set to be announced April 2

On top of the tariffs on Mexican, Canadian and Chinese imports, Trump is also set to announce a slew of what he deems “reciprocal tariffs” across the globe come April 2, the day after the conclusion of an investigation the president ordered. These tariffs are aimed at balancing trade with other countries, some of which have higher tariff rates on US exports than the US imposes on imports from those nations.

That could also lead to the US levying even higher rates on Mexican, Canadian and Chinese imports, in addition to the tariffs set to go into effect on March 4.

Commerce Secretary Howard Lutnick called out Canada’s 5% national sales tax when discussing potential reciprocal tariffs Trump could be eyeing, in a Fox News interview that aired Wednesday.

“We’re supposed to have a free trade agreement with Canada, but they have a 5% national tax,” Lutnick said. “They cheat right down the middle, and the president is sick and tired of it.”

This is a developing story and will be updated.