President Donald Trump plans to impose tariffs on Canada and Mexico, starting on March 4, in addition to doubling the 10% universal tariff charged on imports from China. The move aims to address illicit drug trafficking, including fentanyl, which Trump claims is being smuggled into the United States at “unacceptable levels”.
The proposed tariffs have sparked concerns about inflation and the potential impact on the global economy, with the S&P 500 index falling 1.6% on Thursday. Canada and Mexico have responded by emphasizing their existing efforts to address drug trafficking and immigration, with Mexican President Claudia Sheinbaum hoping to reach an agreement to avoid the tariffs.