US President Donald Trump hit traditional free-trade partners Canada and Mexico with 25% tariffs on a broad spectrum of goods on Tuesday March 4, prompting swift condemnation from the leaders of both countries.
As of March 4, the Canadian government has levied retaliatory tariffs set to exceed an estimated $100 billion worth of US imports, with Mexico’s administration expected to hit back with measures of its own on Sunday March 8.
China, which does not form part of the North American free-trade cohort, but whose specter looms large over global metals markets, has been slapped with an additional 10% tariff on top of the 10% tariff levied on February 1; the country has now retaliated in kind twice, bringing its own retaliatory tariff to a matching 20%.
The implications of these protectionist measures are roiling US metals supply chains with uncertainty for the second time in as many months.
Trump tied the implementation of the tariffs — which were originally slated to take effect on February 1 — to an alleged lack of enthusiasm for policing drugs and migrants flowing through both borders.
“Both nations’ failure to arrest traffickers, seize drugs or coordinate with US law enforcement constitutes an unusual and extraordinary threat to America’s security — demanding IEEPA [International Emergency Economic Powers Act] action to force accountability and protect American lives,” according to a statement from the White House on Monday March 3.
