President Donald Trump confirmed Monday that 25% tariffs in Canada and Mexico will come into effect on Tuesday.
While asking questions at a press conference announcing the US $100 billion investment by Taiwan Semiconductor Manufacturing Co. (TSMC) in the US, Trump reiterated that tariffs will be in place on US neighbors on Tuesday.
“But what's very important is tomorrow, tariffs: 25% in Canada and 25% in Mexico,” he said.
Trump pitched Canadian and Mexican automakers to move to the US to avoid paying tariffs.
And I just say this to the people of Canada and Mexico. If they are trying to build auto plants, it's much better to build here as we have a market. We think it will be very exciting and very exciting for the automotive company as they are the market they sell the most.
Trump was originally scheduled to impose a 25% tariff on Canada and Mexico on February 4th. Canada's energy products were a notable exception. He also placed an additional 10% tariff on China.
However, just hours before the tariffs and the 25% US tariffs from Canada came into effect, Mexico and Canada agreed to increase security at their respective borders with the US, and the three countries later agreed to a four-week suspension on tariffs.
However, tariffs on China have been implemented.
When reporters asked if Canada or Mexico could make a deal by midnight, Trump said there was “no room.”
“There are no rooms left in Mexico or Canada. No, tariffs, you know, they're all set up. They'll come into effect tomorrow,” he said.
He then pointed out the fentanyl crisis. Fentanyl is the driving force behind these tariffs in the first place, speaking to the additional 10% tariffs imposed on China, reaching 20%.
“As you know, a huge amount of fentanyl is flowing from Mexico into our country, and as you know, we go from China to Mexico and Canada,” he told reporters. “And there were ten more in China. So it's 10 plus 10.”
