Updated March 4, 2025 | Written by Kellen Staff
Updates on Tariff Actions
March 4, 2025, 12:01 AM ET: President Trump officially imposed a 25% tariff on nearly all goods imported from Mexico and Canada, alongside an additional 10% tariff on goods from China. As the top three export markets for the United States, these countries accounted for more than 40% of total U.S. imports last year. The imposition of these tariffs marks a significant escalation in trade tensions. It has triggered a reciprocal trade war, which could have widespread economic consequences, impacting agriculture and manufacturing industries. In response, China, and Canada swiftly retaliated, announcing their own tariffs on U.S. goods. China will impose tariffs on $21 billion worth of American agricultural and food products, including 15% tariffs on chicken, wheat, corn, and cotton, as well as 10% tariffs on imports of sorghum, soybeans, pork, beef, seafood, fruits, vegetables, and dairy products. Beijing has also imposed export and investment restrictions on 25 U.S. companies on the grounds of national security. Canada also announced 25% tariffs on $30 billion worth of U.S. goods just after midnight, though it has yet to specify which products are affected. Mexico is expected to announce its response later today.
Feb. 28, 2025, 12pm ET: After a one-month pause, tariffs, a signature part of Trump’s campaign, are set to take effect beginning March 4. The President is promising a 25% tariff on goods from Canada and Mexico and an additional 10% on goods from China. The taxes will impact over $1 trillion of imports and likely start a trade war in retaliatory tariffs. The President has claimed that Canada, Mexico, and China have allowed illicit drugs and illegal immigrants into the U.S., and the tariffs are meant to spur an increase in North American border security and crackdown on the illegal fentanyl trade in China.
Feb. 13, 2025, 2pm ET: President Donald Trump unveiled a plan today to raise tax rates on imports from other countries in an effort to eliminate trade imbalances. The tariffs, enacted via executive action, could boost U.S. revenue but may spark a global trade war and exacerbate rising inflation. These reciprocal tariffs target countries imposing import duties on U.S. goods, adding to the 25% tariffs on steel and aluminum and a 10% across-the-board tariff announced earlier this week. The tariffs will not take effect immediately, allowing nations time to negotiate new trade terms with the U.S., according to a White House official.
Feb. 10, 2025, 6pm ET: President Trump today announced a 25% tariff on all steel and aluminum imports, including finished metal products. The new tariffs will apply to all trading partners, with no exemptions, including Canada and Mexico, the United States’ top two foreign suppliers of these metals. This move follows last week’s 10% tariffs on goods from China and the currently suspended 25% levies on Canada and Mexico. Additionally, the president has outlined plans for reciprocal tariffs against other nations. The tariffs were approved under Section 232 of the Trade Expansion Act, which grants the president broad authority to impose trade restrictions for national security reasons. Trump had previously invoked this same provision to implement steel and aluminum tariffs during his first term in office.
Feb. 4, 2025, 9am ET: The United States imposed a 10% tariff on Chinese imports starting today. In response, China retaliated with targeted tariffs and issued warnings to several U.S. companies, including Google, about potential sanctions. President Trump is scheduled to speak with Chinese President Xi Jinping in the coming days.
Feb. 3, 2025, 5pm ET: After discussions with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau, President Donald Trump announced a 30-day delay in imposing tariffs on Mexico and Canada. This delay follows agreements by both neighboring countries to enhance border security efforts. As of this posting, tariffs on China remain in effect and are scheduled to take effect on Tuesday.
What Happened?
On Saturday, February 1st, the White House officially announced that President Donald Trump would impose new tariffs on Canada, Mexico, and China. Senior figures on Capitol Hill were briefed on the decision.
Trump is imposing a 25% tariff on imports from Canada and Mexico and a 10% additional tariff on imports from China. Energy resources from Canada will have a lower 10% tariff.
The White House fact sheet is available here.
On What Authority did the President do This?
Citing an emergency situation from the extraordinary threat posed by undocumented immigrants and illegal drug trafficking, including fentanyl, the President exercised his authority under the International Emergency Economic Powers Act (IEEPA) to impose tariffs on Mexico, Canada, and China. This is an unprecedented action under the IEEPA, and it is unchartered legal territory.
The Executive Orders were published on February 1, 2025.
When Will this Take Effect? For How Long?
The tariff actions against Mexico, Canada, and China will begin on February 4, 2025.
It is unclear how long the tariffs will be imposed. The order notes that the tariffs will be removed when the flow of migrants and illegal fentanyl into the United States is alleviated.
What was the Response?
Both Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum announced counter-tariffs on Saturday.
Canada will impose 25% tariffs on $155 billion worth of U.S. goods, starting with $30 billion on Tuesday and followed by $125 billion in 21 days.
Mexico plans retaliatory “tariff and non-tariff measures,” in retaliation for Trump’s move, but the potential scope was not clear.
China said it would file a legal case against the United States at the World Trade Organization and vowed to take “corresponding countermeasures” without offering details.
Reactions from the business, manufacturing, and building trades were swift and harsh.
See a sampling of statements from the U.S. Chamber of Commerce, the National Association of Manufacturers, the National Association of Home Builders, and the Distilled Spirits Council.
