New tariffs on Mexico, Canada and China start tonight

Commerce Secretary Howard Lutnick has confirmed that new tariffs on Mexico and Canada are set to take effect at midnight Eastern Time tonight.

CNN- Commerce Secretary Howard Lutnick has confirmed that new tariffs on Mexico and Canada are set to take effect at midnight Eastern Time tonight. The tariffs include a 10% hike on Chinese imports, adding to last month’s increase. Executive orders also impose tariffs on most Canadian and all Mexican goods valued over $800, though the exact percentage remains unclear.

While the Trump administration acknowledges progress on border security efforts, Lutnick says the president is still weighing his approach to tariffs on America’s neighbors. “He’s sort of thinking about right now how exactly he wants to play it with Mexico and Canada, and that is a fluid situation,” Lutnick stated.

The tariffs will be paid by U.S. companies, but officials downplay how much of those costs will be passed on to consumers. However, economists warn they could lead to higher prices for everyday goods, including shoes, electronics, groceries, and especially vehicles.”If you can buy one before Tuesday, before the tariffs come in and we either shut down or become more expensive, you should go and do it,” said Flavio Volpe, president of the Automotive Parts Manufacturers’ Association.

Another concern is potential retaliatory measures from affected countries. Canadian Prime Minister Justin Trudeau has vowed a “strong, unequivocal, and proportional” response. Despite these concerns, some analysts believe the tariffs could ultimately benefit the U.S. by serving as negotiation leverage.

“The key would be no tariffs, but to get there, there’s a negotiation. He’s starting that negotiation,” said Canadian businessman Kevin O’Leary.