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Investing.com -- President Trump confirmed on Truth social that tariffs on Mexico and Canada will commence on March 4. This follows a misunderstanding yesterday when the start date for these tariffs was confused with the launch date for reciprocal tariffs, leading investors to believe that the tariff implementation was being delayed.
In his post, President Trump expressed his concerns about the high levels of drugs, particularly Fentanyl, entering the U.S. from Mexico and Canada. He stated that the tariffs would take effect on March 4 unless the drug flow is significantly reduced or stopped. Additionally, he confirmed an extra 10% tariff on China from the same date. The President also clarified that the reciprocal tariff date of April 2 remains unchanged.
Despite the President’s comments, there was some confusion during his first cabinet meeting on Wednesday. When asked about the timing for the start of the duties for Canada and Mexico, he suggested it would be April 2. However, a White House official later clarified that the March 4 deadline for the 25% tariffs on Mexican and Canadian goods was still in effect, pending a review of actions taken by these countries to secure their borders and halt the flow of migrants and the opioid fentanyl into the U.S.
The Canadian dollar and the Mexican peso saw an increase in value against the greenback following President Trump’s comments. Canadian Innovation Minister Francois-Philippe Champagne stated that Canada would await signed executive orders from Trump before reacting, adding that Canada’s objective is to avoid or delay the tariffs if possible. Meanwhile, Mexico’s Economy Ministry declined to comment on Trump’s remarks.
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