President Trump talks 25% tariffs to Mexico, Canada beginning March 4
As for an increase to China tariffs, Trump said “It depends on what they do with their currency. It depends on what they do in terms of retaliation.”
Reuters
President Donald Trump’s 25% tariffs on Mexican and Canadian imports, along with an additional 10% tax on Chinese goods, bringing the total tariff to 20%, took effect Tuesday, triggering a trade war between the U.S. and its three largest trading partners that will raise prices for American consumers.
In the hours after implementation of the new levies, leaders from Mexico, Canada, and China all vowed to take retaliatory action. U.S. stocks seemed to respond, opening lower for the second day in a row, with the Dow, S&P 500, and Nasdaq all tumbling almost 1.5%. Tariff-sensitive stocks including automakers, retailers, and homebuilders all contributed to the declines after the S&P 500 experienced its worst day of 2025 following Trump’s confirmation Monday that the tariffs would go into effect.
“They’re going to have to have a tariff. So what they have to do is build their car plants, frankly, and other things in the United States, in which case they have no tariffs,” Trump said at the White House Monday as the Dow Jones average fell in real time.
Trump said the tariffs are consequences for the three countries not doing enough to prevent the flow of fentanyl, which is fueling the country’s deadly opioid epidemic, into the U.S.
Mexico, China, and Canada make counter moves
Mexican President Claudia Sheinbaum said Tuesday Mexico had taken “decisive actions” to stop fentanyl from crossing the U.S. southern border during a 30-day pause on tariffs and that there was no “reason, rationale or justification” behind Trump’s decision. Sheinbaum said Mexico would announce its retaliation plans Sunday.
China’s response was immediate. It announced 10% to 15% additional tariffs on American agriculture exports and placed new investment restrictions on 25 U.S. firms. A Chinese commerce military spokesperson called Trump’s tariffs “blackmail” and said the country has long been committed to addressing the opioid epidemic.
Canadian Prime Minister Justin Trudeau announced Ottawa would launch 25% tariffs on $20.7 billion worth of American exports to Canada, including orange juice, peanut butter, and beer. He also threatened tariffs on the remaining $86.3 billion worth of American exports if Trump does not lift U.S. tariffs on Canada within 21 days.
What items will cost more for American consumers?
Tariffs are likely to disrupt supply chains and increase the cost of transportation which will lead to a rise in price for almost everything, Truist head of U.S. economics Mike Skordeles, previously told USA TODAY.
“Broadly speaking, higher tariffs will increase import costs, forcing companies to choose between absorbing the hit to their margins or passing it on to consumers,” Madhav Durbha, a supply chain expert and group VP of CPG and manufacturing at RELEX, said in an email to USA TODAY. “Either way, this creates inflationary pressure and dampens consumer spending, impacting not only individual companies but the broader market.”
But while prices are expected to increase across the board, some items will see a price bump more quickly than others. For instance, consumers are likely to pay more for perishable foods sooner than they will pay more for their cars.
As previously reported, the following common imports from Canada to the U.S., according to the Bureau of Industry and Security and Trading Economics, could be affected by Trump’s tariffs:
- Wood
- Charcoal
- Aluminum
- Iron and steel appliances
- Cereal, flour, starch and milk products
- Rubbers
- Alcoholic beverages
- Carpets and other textile floor coverings
- Wool, animal hair, horsehair yarn and fabric
- Umbrellas, walking-sticks, seat-sticks, whips
- Cotton
- Photographic or cinematographic goods
- Cork products
- Printed books
Items the U.S. imports from Mexico, according to Trading Economics and the OEC, that could be affected by Trump’s tariff plan include:
- Cereals
- Paper products
- Processed fruits and nuts
- Tropical fruits
- Tomatoes, onions, lettuce and cabbage
- Pickled foods
- Fruit juice
- Fertilizers
- Dairy products, eggs and honey
- Cotton
- Beer and hard liquor
- Coffee, tea, mate and spices
- Meat, fish and seafood
- Sauces and seasonings
- Baked goods
- Avocados
- Raw sugar
Common imports to the U.S. from China, according to Trading Economics and the U.S. Department of Agriculture, that could be affected by Trump’s tariff plan include:
- Fish and crustaceans
- Vegetable fats and oils
- Vegetables (especially corn), fruit and nuts
- Soaps, lubricants, waxes, candles, modeling pastes
- Cereal, flour, starch, wheat and milk products
- Coffee, tea and spices
- Sugar
- Cocoa
- Dairy products, eggs, honey and edible products
- Vinegar
- Apple juice
- Garlic
Reuters contributed to this report. Reach Rachel Barber at rbarber@usatoday.com and follow her on X @rachelbarber_
