President Donald Trump has officially confirmed that tariffs on Canadian and Mexican imports will go into effect on March 4, 2025, following his comments earlier this week suggesting a delay.
Trump plans to impose a 25% tariff on imports from Mexico and Canada, while applying a reduced 10% tax on Canadian energy products, including oil and electricity.
In a post on Truth Social, Trump said the decision was driven by ongoing concerns over “unacceptable levels” of drugs entering the U.S. from both countries, with a specific focus on fentanyl flowing through the borders.
“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,” Trump wrote. “China will likewise be charged an additional 10% Tariff on that date.”
Bank of Canada Governor Tiff Macklem recently warned of the economic fallout Canada could face if the trade conflict intensifies.
“Increased trade friction with the United States is a new reality,” he said, cautioning that such a shock wouldn’t be temporary—it would fundamentally alter Canada’s economic trajectory,” Macklem said.
“The economic consequences of a protracted trade conflict would be severe,” he continued. “If tariffs are long-lasting and broad-based, there won’t be a bounce-back. We may eventually regain our current rate of growth, but the level of output would be permanently lower.”
On Thursday, Mexican President Claudia Sheinbaum expressed optimism, stating that Mexico remains hopeful it can negotiate a deal with the U.S. to avoid the looming tariffs, despite the recent announcement.
Markets are bracing for the impact, as analysts predict that these tariffs could lead to higher costs for U.S. consumers, putting additional strain on the broader economy. This move is expected to heighten market volatility, as traders and analysts weigh the potential ripple effects on global supply chains.
Analysts are watching closely as these moves could signal broader trade tensions, with Trump hinting at further 25% tariffs on the European Union as well.
This article was written for Canadian Mortgage Trends by:
