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March 10, 2025 | 08:39 pm
TEMPO.CO, Jakarta - U.S. President Donald Trump has raised import tariffs for goods entering from Mexico, Canada, and China. According to documents signed on Tuesday, March 4, 2025, the U.S. imposed a new 25 percent import tariff on Mexico and Canada.
At the same time, Trump also doubled the entry duty on goods from China entering the United States to 20 percent. "President Trump is implementing a 25 percent tariff on Canadian goods and a 10 percent tariff on Canadian energy resources until Canada cooperates with the U.S. against drug traffickers and on border security," said the US government in X.
Trump reaffirmed his intention to impose additional reciprocal tariffs on April 2, a move likely to further roil financial markets. "Other countries have used tariffs against us for decades, and now it's our turn to start using them against those other countries," he said, as quoted by Reuters.
According to apnews, the 25% tariff on Mexico and Canada will result in a tax increase on U.S. citizens of $120 billion to $225 billion per year, according to Jacob Jensen, a trade policy analyst at the American Action Forum, a center-right think tank. Meanwhile, additional tariffs on China can burden consumers up to $25 billion.
Potential price hikes and an economic slowdown could have negative political effects for Trump. In last year's presidential election, he promised voters that he could quickly lower the inflation rate, which soared during the administration of Democratic President Joe Biden. However, Trump also campaigned with a promise to impose broad tariffs, which are set to begin on April 2 by adjusting U.S. tariffs to be equivalent to taxes imposed by other countries on American goods.
Canada and Mexico Tariff Increase Postponed
On Thursday, March 6, 2025, Donald Trump's imposition of a 25% tariff on many imports from Mexico and some imports from Canada were postponed for one month amid widespread concerns about the economic impact of a wider trade war.
The White House insists that these tariffs are aimed at stopping fentanyl smuggling, but the tax policy proposed by Trump has damaged the decades-long North American trade partnership. Trump's tariff plan also caused a stock market meltdown and sparked concerns among U.S. consumers.
In addition to the fentanyl issue, Trump emphasized that these tariffs can be resolved by fixing the trade deficit. Speaking in the Oval Office, he reiterated his plans to impose "reciprocal" tariffs starting April 2.
Most of the tariffs go on April the second,” Trump said before signing the orders. “Right now, we have some temporary ones and small ones, relatively small, although it’s a lot of money having to do with Mexico and Canada.”
Trump also asserted that he does not plan to extend the 25% tariff exemption for the automotive industry for another month. Based on Trump's signed order:
- Imports from Mexico that comply with the USMCA 2020 trade agreement will be exempt from the 25% tariff for one month.
- Automotive imports from Canada that comply with the trade agreement will also be exempt from the 25% tariff for one month.
- Potash imported by U.S. farmers from Canada will be subject to a 10% tariff, the same as the tariff Trump intends to impose on energy products from Canada.
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