KANSAS CITY — The Trump administration plans to impose tariffs of 25% on nearly all goods imported from Canada and Mexico. The tariffs are scheduled to go into effect on Tuesday, Feb. 4.
The Canadian and Mexican governments said they plan to retaliate, with Canada initially imposing tariffs on $125 billion of American goods that will be phased in starting Feb. 4. American products facing tariffs during the first phase will include meat, poultry, eggs, dairy products, dairy ingredients, honey, tomatoes, legumes, nuts, fruit, coffee, tea, spices, grain-based commodities like wheat, rye, barley, oats, canola and rice, margarine, processed meats, sugar, molasses, chocolate, malt extract and sauces.
The Mexican government had yet to detail a specific list of US products subject to tariffs at press time, but the Wall Street Journal reported Sunday afternoon that the plan includes a focus on US goods from “Republican strongholds.”
The United States also imposed an additional 10% tariff on imports from China. The Chinese government said it would take the case to the World Trade Organization.
Using the International Emergency Economic Powers Act (IEEPA), President Trump declared a national emergency related to the flow of illicit opioids and other drugs into the United States, most notably fentanyl. The Act gives the president broad powers to act without input from Congress.
“As the country’s largest domestic manufacturing sector by employment, supporting more than 22 million American jobs and contributing $2.5 trillion to the US GDP, the consumer packaged goods industry supports a strategic ‘America first trade policy’ that protects American jobs and keeps food, beverage, household and personal care products affordable,” said Tom Madrecki, vice president of supply chain resiliency for the Consumer Brands Association, Arlington, Va. “Tariffs on all imported goods from Mexico and Canada — especially on ingredients and inputs that aren’t available in the US — could lead to higher consumer prices and retaliation against US exporters.
“Despite sourcing the vast majority of ingredients and inputs from US farms, CPG companies depend on global supply chains for certain imports due to unique growing conditions and other limiting factors around the world. We urge leaders in Mexico and Canada to work with President Trump to protect consumers’ access to affordable products and remove tariffs that could contribute to grocery inflation.”
A fact sheet published by the White House said the Trump administration was taking action to hold Canada, Mexico and China accountable for their promises of “halting illegal immigration” and “stopping poisonous fentanyl and other drugs” from flowing into the country. The fact sheet did not detail what each country can do to meet the expectations of the Trump administration and end the imposition of the tariffs.
“The president is right to focus on major problems like our broken border and the scourge of fentanyl, but the imposition of tariffs under IEEPA is unprecedented, won’t solve these problems, and will only raise prices for American families and upend supply chains,” said John Murphy, senior vice president and head of international for the US Chamber of Commerce. “The chamber will consult with our members, including main street businesses across the country impacted by this move, to determine next steps to prevent economic harm to Americans. We will continue to work with Congress and the administration on solutions to address the fentanyl and border crisis.”
