Trump plans tariffs on Mexico and Canada on March 4, while doubling existing 10% tariffs on China

Trump plans to impose tariffs on Canada, Mexico, and China to combat drug trafficking and boost the US economy.

President Donald Trump plans to impose tariffs on Canada and Mexico starting Tuesday (March 4, 2025), in addition to doubling the 10% universal tariff charged on imports from China.

In a Truth Social post Thursday, Mr. Trump said illicit drugs such as fentanyl are being smuggled into the United States at “unacceptable levels" and that import taxes would force other countries to crack down on the trafficking.

“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,” the Republican President wrote. “China will likewise be charged an additional 10% Tariff on that date.”

What will be the impact of Trump’s trade war? | Explained

The prospect of escalating tariffs has already thrown the global economy into turmoil, with consumers expressing fears about inflation worsening and the auto sector and other domestic manufacturers suffering if Trump raises import taxes. But Mr. Trump has also at times engaged in aggressive posturing only to give last-minute reprieves, previously agreeing to a 30-day suspension of the Canada and Mexico tariffs that were initially supposed to start in February.

The threat of tariffs frightened the stock market with the S&P 500 index falling 1.6% on Thursday. The S&P 500 is now just 1.4% higher than it was after Mr. Trump won the election in November, giving up almost all of the gains that the president once cited as evidence of an economic revival.

Asked Thursday about the fact that tariffs are largely paid for consumers and importing companies, Mr. Trump dismissed any concerns by saying: “It's a myth.” It's possible for a stronger U.S. dollar to offset some of the costs of tariffs, but Trump's statement goes against most economic modeling given the breadth of his planned taxes.