US president Donald Trump has confirmed he will introduce a 25% tariff on most Canadian and Mexican goods as of March 4.
Canadian energy products will be subject to a 10% tariff.
Trump also confirmed he will add another 10% levy on China, on top of the 10% tariff that took effect earlier this month.
In a post on his social media platform Truth Social, Trump said the tariffs were in response to a response to "unacceptable levels" of drugs entering the US via Canada and Mexico.
“We cannot allow this scourge to continue to harm the USA, and therefore, until it stops, or is seriously limited, the proposed TARIFFS scheduled to go into effect on MARCH FOURTH will, indeed, go into effect, as scheduled,” the president wrote. “China will likewise be charged an additional 10% Tariff on that date.”
The tariffs are expected to lead to higher prices for consumers, particularly affecting the automotive and food industries.
Trump has also threatened potential tariffs on EU products, though no specific timeline has been announced.
Another day of tariff news has caused volatility in US markets but Wall Street has demonstrated its resilience, IG chief market analyst Chris Beauchamp said.
The S&P 500 and Dow Jones traded higher as a pullback in Nvidia following its earnings report weighed on the tech-laden Nasdaq.
“The timetable published still leaves room for negotiation, providing some hope that further hits to global trade can be avoided,” Beauchamp said. “But Trump is likely to drive a hard bargain.”