(Dan Tri) - The Trump administration said it is considering reducing the 25% tariff recently imposed on goods imported from Canada and Mexico. This decision could be announced as early as March 5.
On March 4, speaking on Fox Business after the tax policy took effect, US Secretary of Commerce Howard Lutnick revealed that Canadian and Mexican officials have continuously contacted him to find ways to reduce the flow of fentanyl into the US.
“They’ve been calling me all day today to prove that they’re going to do a better job of controlling fentanyl,” Lutnick said. “So I think President Trump will work out a deal with them.”
The US Commerce Secretary stressed that Trump has no intention of "pausing" the tariff policy but could compromise: "You do more, I will give in a little bit. Maybe tomorrow we will announce that."
However, he also asserted that China will not benefit from this tax reduction policy anytime soon, as it continues to subsidize fentanyl production.
US President Donald Trump and Commerce Secretary Howard Lutnick (Photo: Reuters).
Previously, on March 3, President Trump signed an executive order imposing a 25% tax on most imported goods from Canada and Mexico, citing the two countries' failure to take sufficient measures to prevent fentanyl trafficking and control their borders.
In addition, all Chinese goods will be subject to an additional 10% tax, bringing the total additional tax rate to 20%. The US President signed the decree imposing this tax on March 3.
Immediately after Mr. Trump’s tariffs took effect, Canada announced a 25% retaliatory tariff. A total of 1,256 products were affected in this round, including orange juice, peanut butter, wine, beer, coffee, household goods, clothing, shoes, motorcycles, cosmetics, wood pulp and paper.
China also immediately announced retaliatory measures. The country's Ministry of Finance said it would impose an additional import tax of 10-15% on some US goods, starting March 10. Soybeans, sorghum, beef, pork, seafood, fruits, vegetables and dairy products will be subject to a 10% tax. The tax rate on chicken, wheat, corn and cotton is 15%.
Mr. Trump's tariffs on Canada and Mexico have sent US financial markets plunging and sparked strong reactions from countries around the world .
Before the US President's speech to Congress, businesses and Republican lawmakers from agricultural states voiced their opposition due to concerns about economic damage and the risk of soaring inflation, according to Politico.
Lutnick hinted that Trump could tie the tax cuts to his commitment to the United States-Mexico-Canada Agreement (USMCA), the Trump administration’s replacement for the North American Free Trade Agreement (NAFTA). “The president is looking at tax breaks for those who comply with the new rules,” Lutnick said. “And if you don’t, you still have to pay the tax.”
This could mean that some industries, especially autos, would benefit if they met country of origin standards. However, the White House has not yet issued an official response.
Even if fentanyl is no longer an issue, however, Canada and Mexico could still face new tariffs in April under Mr Trump's reciprocal tariff plan.
The US commerce secretary also criticized Canada's 5% sales tax, calling it a "sophisticated trade barrier." He also mentioned barriers to access to Canada's dairy market and the digital services tax, two areas that could make the country the next target of Trump's reciprocal tariffs.
Source: https://dantri.com.vn/kinh-doanh/ong-trump-se-quay-xe-giam-thue-mexico-canada-manh-tay-voi-trung-quoc-20250305111712773.htm
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