US Commerce Secretary Howard Lutnick confirmed on Sunday that tariffs on Canadian and Mexican goods will go into effect as scheduled on Tuesday, March 4. However, he noted that President Donald Trump will determine their exact levels before implementation.
“He’s sort of thinking about right now how exactly he wants to play with Mexico and Canada, and that is a fluid situation,” Lutnick stated on Fox News’ Sunday Morning Futures. He reiterated that tariffs would be imposed but left room for last-minute negotiations by the president and his team.
Border security and Fentanyl concerns
While acknowledging that Canada and Mexico have made some progress in securing their borders with the US, Lutnick highlighted the ongoing issue of fentanyl trafficking. The synthetic opioid has been a major concern for US authorities, contributing to the country’s drug crisis.
Additionally, Trump is expected to raise tariffs on China from 10% to 20% unless Beijing takes significant steps to curb fentanyl trafficking into the US.
Trade investigation on Lumber imports
On Saturday, Trump launched a new trade probe into imported lumber, which could lead to additional tariffs, further intensifying trade tensions. The investigation, conducted under Section 232 of the Trade Expansion Act of 1962, follows previous duties imposed on Canadian softwood lumber and the impending 25% tariffs on Canadian and Mexican goods.
This marks Trump’s third tariff-related action in a week, signalling a continued aggressive trade policy.
(With Reuters inputs)