Trump says 25% tariffs on imports from Canada and Mexico will go ahead

President Trump on Monday declared that he would slap 25% tariffs on imported goods from Canada and Mexico starting on Tuesday, after weeks of speculation that the threat would be lifted or the rate lowered.

Trump said the tariffs would punish Canada and Mexico — partners in a trilateral trade agreement — for fentanyl trafficking. But he also said the move would encourage car manufacturers and other businesses to move their production to the United States.

“I would just say this to people in Canada or Mexico: if they’re going to build car plants, the people that are doing them are much better off building here, because we have the market where they sell the most,” Trump told reporters at the White House.

Trump is also set to add another 10% to tariffs on imports of Chinese goods, after initially applying tariffs of 10% last month.

The fate of Trump’s tariff threat has been up in the air for weeks

Trump’s tariff threats have weighed on markets, although there has been considerable uncertainty over whether he would go ahead with the 25% tariffs.

Trump had originally said the tariffs would begin on Feb. 1, but then gave leaders of the two countries a month to show they were curbing illegal immigration into the United States as well as drug trafficking.

Last week, he briefly said he would put off the tariffs until April 2 — then a day later, said that March 4 was the deadline.

During the weekend, Commerce Secretary Howard Lutnick said that the decision on the tariff rate was still up in the air, telling Fox News that the two nations had “done a reasonable job” curbing migration but not fentanyl.

“He’s sort of thinking about right now how exactly he wants to play it with Mexico and Canada, and that is a fluid situation,” Lutnick said on Sunday.

Trump said there was no wiggle room left for talks

During an event with Taiwan Semiconductor Manufacturing Co (TSMC) chief executive C.C. Wei at the White House on Monday, Trump said that the 25% tariffs would go ahead.

Asked whether there was any wiggle room for the two countries to negotiate the rate, Trump said: “No room left for Mexico or for Canada.”

“The tariffs, they’re all set, they take effect tomorrow,” he said.

Canada and Mexico have vowed to retaliate.

TSMC announced on Monday that it plans to spend $100 billion on semiconductor plants in Arizona, bringing the company’s total investments in the United States to about $165 billion.

Lutnick noted that TSMC had received a $6 billion grant from the CHIPS Act which spurred its plans to spend $65 billion on plants in Arizona — but is now spending $100 billion because of Trump’s threat to put tariffs on semiconductor imports.

 

Bruce Pearl, winningest men’s basketball coach in Auburn history, announces retirement

Auburn coach Bruce Pearl announced his retirement Monday less than six months after finishing the Tigers' best season in program history with another trip to the Final Four. Pearl's 38-year-old son Steven Pearl, who has been on his father's coaching staff for all 11 seasons at Auburn, will take over as coach.

Jimmy Kimmel will be back on air on Tuesday, Disney says

The late night comic was suspended last week under pressure from the Trump administration after comments about Charlie Kirk's killing.

Unease grows at the Justice Department as Trump’s threats get even more blunt

President Trump is directing the Justice Department to prosecute his perceived political enemies, upending the career ranks and raising questions about selective prosecution.

Supreme Court allows Trump to fire — for now — remaining Democrat on FTC

At issue is whether the president has the authority to dismiss the heads of those agencies that are protected by Congress.

Climate change is delaying peak fall foliage. Here’s what to expect this year

Leaves typically start to peak in northern states by early October, but projecting peak foliage isn't an exact science. Here are some things you can do to get the most out of fall's colors.

400 entertainers co-sign ACLU letter supporting Jimmy Kimmel

Celebrities including Pedro Pascal and Selena Gomez wrote: "Our government has resorted to threatening the livelihoods of journalists, talk show hosts, artists, creatives and entertainers."

More Economy Coverage