Trump Considers Tariffs on Mexico and Canada Over Fentanyl Concerns

The U.S. is considering imposing tariffs on goods from Mexico and Canada, potentially starting March 4, due to concerns over fentanyl trafficking. According to U.S. Commerce Secretary Howard Lutnick, the tariffs could be adjusted from the initially proposed 25%, depending on negotiations. President Trump has expressed dissatisfaction with both countries' efforts to stop the flow of drugs into the U.S. Mexico's President Claudia Sheinbaum indicated a willingness to negotiate but also considered retaliatory tariffs on U.S. products. Canada's Prime Minister Justin Trudeau has vowed a "strong unequivocal and proportional response" if the tariffs are imposed. Economists warn that these tariffs could increase retail prices and business costs. Trump also plans additional tariffs based on reports due by April 1, including "reciprocal tariffs" based on other countries' trade barriers and tax regimes. Lutnick also mentioned separating government spending from GDP reports to increase transparency, echoing Elon Musk's view that government spending doesn't inherently create economic value.