Canada and Mexico: On March 4, 25% tariffs on all products from Canada and Mexico went into effect, as announced by President Donald Trump and his administration.
Then, on March 6, President Trump announced USMCA-compliant products would receive a 1-month delay from tariffs on Mexico and Canada until April 2. Earlier this week, it was also announced that autos would be receiving a reprieve from the tariffs until April 2.
Oil, natural gas and energy production materials from Canada are subject to a 10% tariff. The Trump Administration is also imposing an additional 10% tariff on all products from China, on top of other Chinese tariffs. You can find more details on the White House fact sheet.
Dive Deeper: These tariffs were set to go into effect in early February. However, they were delayed for 30 days after both Canada and Mexico reached an agreement with President Trump to provide more manpower and resources at their respective borders.
In response to the tariffs, Canada and China have announced retaliatory tariffs on products coming from the United States. China announced tariffs on some U.S. goods, effective March 10.
Canada announced 25% tariffs on $30 billion CDN in U.S. imports, effective immediately. This included approximately $2B in pulp/paper. They have plans to impose 25% tariffs on another $125 billion CDN in broader U.S. imports in 21 days if the U.S. tariffs are not withdrawn.
Mexican government officials continue to be in close contact with the Trump Administration, negotiating on these tariffs. AF&PA will monitor additional announcements throughout the month and provide updates.
Keep an eye on the upcoming Canadian elections to see how Trudeau’s party fares and how the U.S.-Canada relationship could change moving forward.
Photo: AF&PA
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