Washington — President Donald Trump has announced plans to impose tariffs on Canada and Mexico starting next Tuesday, along with doubling the universal tariff of 10% applied to imports from China. This move comes as part of a broader strategy to combat illicit drug trafficking, particularly fentanyl, which Trump claims is being smuggled into the country at “unacceptable levels.”

In a message posted on his social network, Truth Social, on Thursday, Trump declared, We cannot allow this plague to continue harming our country and therefore, until it stops, or seriously limited, the proposed tariffs that will enter into force on March 4, effectively, will come into force, as planned.

Trump further stated that China must pay a 10% additional tariff because a large percentage of drugs, many in the form of fentanyl, are manufactured and supplied in China. The Republican tycoon emphasized that import taxes would force other countries to take energetic measures against drug trafficking.

In addition, Trump confirmed the reciprocal tariffs for everyone, which he had previously announced in April. The date of the second reciprocal tariff of April will remain in full vigor and effect, he wrote. If they impose a tariff or tax, we impose exactly the same level of tariff or tax, it is that simple, said the Republican on February 13 in the Oval Office of the White House.

Trump also mentioned that European countries would face a 25% tariff. He also wants separate tariffs on cars, computer chips, and pharmaceutical medications that would apply in addition to reciprocal tariffs.

The president has already announced that he will eliminate exemptions to his steel and aluminum tariffs from 2018, in addition to planning copper import taxes.

The prospect of these tariffs has already plunged the global economy into chaos, with consumers expressing fears about worsening inflation and the automotive sector potentially suffering if the two largest commercial partners of the United States, Canada and Mexico, are taxed.

The possibility that prices rise and growth slow could generate a political reaction against Trump, who promised voters in last year’s presidential elections that he could quickly reduce the inflation rate, which shot up during the mandate of President Joe Biden. But Trump also campaigned to impose broad and radical tariffs, which he plans to launch on April 2 by restoring tariffs so that they coincide with the taxes that he determines other countries on U.S. products charge.

The Conference Board reported on Tuesday that its Consumer Confidence Index had fallen 7 points to a reading of 98.3. It was the largest monthly fall since August 2021, when inflationary pressures began to impact throughout the United States as the economy recovered from the Coronavirus pandemic. Inflation expectations average to 12 months increased from 5.2% to 6% in February, said the Conference Board.

There was a marked increase in mentions of trade and tariffs, to a level not seen since 2019, said Stephanie Guichard, a senior economist of the Conference Board. The most notable was that comments on the current administration and their policies dominated the answers.

The Mexican president, Claudia Sheinbaum, who from the beginning opted for a composing position, said Thursday that he will seek dialogue with Trump about tariffs. We hope that we can talk to President Trump (…) that we can reach an agreement and that on March 4 we can announce something else,

said the ruler at her morning press conference.

Sheinbaum said he hoped to talk to Trump after cabinet-level meetings are held in Washington this week. The Secretary of Foreign Affairs of Mexico, Juan Ramón de la Fuente, had scheduled to meet with the United States Secretary of State, Marco Rubio, Thursday afternoon.

The Mexican president said Trump, as you know, has her way of communicating. But he affirmed that his government would remain with the ‘cold head’ and optimistic on the possibility of reaching an agreement to avoid tariffs.

In addition, he added that Mexico’s security authorities analyze the exchange of intelligence with their American counterparts, which would allow important arrests in the United States. In the economic front, he pointed out that the objective of Mexico is to protect the commercial agreement between Mexico and the United States that was negotiated during the first Trump administration. That agreement, established in 2020 and included Canada, was an update of the North American Free Trade Agreement of 1994.

The implications of these tariffs are far-reaching. For American consumers, the increased costs of imported goods could lead to higher prices at the checkout. For businesses, particularly those in the automotive and technology sectors, the tariffs could disrupt supply chains and increase production costs. The automotive industry, which relies heavily on cross-border trade with Canada and Mexico, could face significant challenges.

Economists warn that the tariffs could exacerbate inflationary pressures, which have already been a concern for many Americans. The Conference Board’s report on consumer confidence reflects growing anxiety about the economic outlook. With inflation expectations rising, consumers may become more cautious about spending, which could slow economic growth.

Critics argue that Trump’s approach to trade policy is shortsighted and could lead to a trade war, harming both American and global economies. They point to the potential for retaliatory measures from Canada, Mexico, and other countries, which could further destabilize the global economy. Proponents, however, argue that the tariffs are necessary to protect American industries and address national security concerns, particularly regarding drug trafficking.

As the March 4 deadline approaches, the international community is closely watching the developments. The outcome of the negotiations between the U.S. and Mexico could set a precedent for future trade relations. For now, the focus remains on finding a mutually beneficial solution that addresses drug trafficking concerns without causing economic disruption.