The president also said 25% tariffs in Canada and Mexico will come into effect on March 4th.
President Donald Trump confirmed the true social social media platforms when tariffs will come into effect on China, Canada and Mexico on March 4th.
An additional 10% collection on Chinese goods entering the US effectively doubles China’s existing 10% universal tariff rate to 20%.
Illegal drugs are “still poured into our country at a level that is highly unacceptable by Mexico and Canada,” Trump wrote on February 27th.
“We cannot allow this tragedy (of illegal drugs) to harm the United States, and therefore we cannot allow it to actually take effect, as planned, until it is stopped or seriously limited,” the president wrote.
Additionally, he confirmed in April that mutual tariffs “maintain full strength and effectiveness.”
Last year, the US imported $439 billion in goods from China from $427 billion in 2023. In recent years, the share of Chinese goods sold in the United States has decreased, down from 21.6% of total US imports in 2018 to 13.4% in 2024.
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The US also imported $413 billion from Canada and more than $500 billion from Mexico in 2024.
Earlier this month, Canada and Mexico secured a 30-day suspension of tariffs as US neighbors pledged to strengthen border policies to curb drug flows and reduce the number of illegal immigrants entering the country.
“The fentanyl-related stuff, if you’re working hard at the border, you have to prove to the President at the end of those 30 days that they’ve satisfied him in that respect,” said Commerce Secretary Howard Lutnick, who hosted the first cabinet meeting of his second term on February 26th.
Trump revealed that it would be “it’s going to be difficult to satisfy.”
He also told reporters that the US is considering a 25% tariff on the European Union, focusing on “cars and more” as it is being abused in global trade.
Trump suggested that the European Union was established to use the United States.
“That’s the purpose and they did a good job of it, but now I’m the president,” Trump said.
European leaders, including Polish Prime Minister Donald Tass, opposed.
Since his inauguration, the President has proposed a variety of drastic trade policies that apply substantial taxation to US trading partners.
U.S. stocks have largely remained unchanged after Trump confirmed his tariff plans.
Evaluation of customs status
The White House “America First” trade agenda has sparked concern among economists and financial markets, and its efforts could revive cost pressures and slow the speed of growth.
Impacting these tariffs on Canada, Mexico and China will reduce long-term GDP by 0.4%, according to the Tax Foundation Economists.
The uncertainty surrounding the inflation outlook within tariffs has economic observers debating whether presidential taxation can be negligible or have a significant impact on prices.
“If tariffs are one big step change, the Fed can choose to look into it and focus on the potential blow of knowledge that the basic effects could drop out next year.”
“But if it’s progressive ratchets are rising over time, it’s likely to be easier for the economy, and the Fed sees it as a structural narrative that prevents it from cutting back more.”
Former Commerce Secretary Wilbur Ross has expressed doubt that these tariffs pose an inflation risk, hinting at the first Trump administration’s policies that have little impact on consumer prices.
“In fact, during the Trump administration, inflation was very low,” Ross told the Epoch Times.
He outlined several reasons for the lack of high inflation during the first round of tariffs.
Exporters like China “are likely to eat some of the increased operating costs,” Ross said.
US companies importing goods typically “can afford” “a small portion of the higher costs,” he said. This was observed in inflation data.
In parts of 2018 and 2019, producer price indexes (a measure of the price a company paid for goods or services) skyrocketed. However, the consumer price index has been barely easier during this period, reaching a low of 1.5%.
Furthermore, products such as steel and aluminum are highly volatile in a broader market for over a year, Ross said, “even without tariffs.”
“It’s hard to say that tariffs are particularly damaging because these commodity duties are much more complicated,” he added.
Imports from China have fallen sharply over the past few years, but economists at the Federal Reserve Bank of New York say the decline is much lower than official data reported.
“As a result, the recent increase in tariffs on China could have a greater impact on the US economy than official US data on China’s import share suggests, especially if favorable tariff treatments on consumer imports have ended,” they wrote in a paper on February 26th.
Market reaction
US stocks shrugged from the latest clarification of Trump’s tariff plans.
After the news, Blue Chip Dow Jones Industrial Arage made the most of 400 points. The S&P 500 and the technology-rich Nasdaq Composite Index has hardly changed.
Financial markets are withstanding major price fluctuations this month. Dow Jones has recently had his worst session so far, but the S&P 500 registered a new high earlier this month.
“The rapid policy changes from the new administration are increasing market uncertainty,” said Mark Malek, chief investment officer at Siebert Financial, in a memo sent by email to the Epoch Times.
“There’s no emotion in the stock market. People do. And now people are nervous.”
