The United States President Trump is expected to decide on Monday, March 3rd, the tariff rates on Canadian, Mexican, and Chinese goods starting from March 4th. White House trade and manufacturing senior advisor Peter Navarro stated on Monday that President Trump would not waver on the tariff issue.
Navarro, in an interview with CNBC on Monday, mentioned that any inflationary impact from tariffs would be “secondary, so I don’t think the President will waver on these aspects because he knows, (it is) for achieving a stronger and prosperous world for America, with actual rising wages and increased factory job positions. This is the path he has chosen.”
He added that similar measures implemented by Trump in his first term did not raise prices.
Previously, when commenting on potential tariffs by Trump, Navarro predicted that these tariffs would play a significant role in providing funds for the U.S. government and reduce the burden of “overdependence on income taxes.”
Last week, Trump announced that starting from March 4th, a 25% tariff would be imposed on all Canadian products excluding energy products, all Mexican imported products, and an additional 10% tariff on Canadian energy products, with an extra 10% tariff on Chinese imported goods. The reason being the lack of action by the three countries in cooperating with the U.S. to combat the fentanyl issue.
These tariffs are scheduled to take effect at 12:01 a.m. Eastern Time on Tuesday.
U.S. Commerce Secretary Howard Lutnick hinted on Sunday that Trump may not impose full tariffs on Canadian and Mexican goods and stated that the President would decide on the specific tariff levels.
Lutnick told Fox News that Mexico and Canada have been “doing reasonably well in protecting the U.S. border,” and Trump is considering the final tariff levels.
“He is now considering how to deal with Mexico and Canada, this is an uncertain situation. Tariffs will be imposed on Mexico and Canada on Tuesday. What specifically, will be left for the President and his team to negotiate,” he said.
Late on Sunday, the White House released a technical order by Trump laying the groundwork for imposing tariffs on Mexico and Canada. The order stated that once the Commerce Department determines sufficient screening measures have been taken, the “de minimis exemption” for parcels valued under $800 subject to tariffs will be revoked.
Fentanyl traffickers exploit the “de minimis exemption” provision to bring fentanyl and its precursor chemicals into the U.S. U.S. officials stated that these parcels often enter the U.S. without inspection.
According to the Centers for Disease Control and Prevention (CDC), in 2023, 72,776 people in the United States died from synthetic opioids, primarily fentanyl.