March 25, 2025
President Trump imposed 25% tariffs on Mexico and Canada on all imports, effective March 4th. After holding a series of conversations with Mexico’s President Claudia Sheinbaum and Prime Minister for Canada, Justin Trudeau, President Trump temporarily paused the 25% tariffs on goods and services protected under the USMCA agreement but moved forward with 25% tariffs on steel and aluminum effective March 12. At the heat of the moment, Ontario’s Premier Doug Ford imposed 25% tariffs on electricity that supplies states like New York and Michigan, prompting President Trump’s response to increase tariffs impacting Canada to 50%, threatening the automotive sector to be impacted next. Fortunately, an agreement was reached, and retaliatory tariffs were revoked.
The U.S. also increased blanket tariffs on all imports from China from 10 to 20%. The Chinese government retaliated with a 10-15% tariff on major agricultural exports.
Upon the implementation of 25% tariffs on all steel and aluminum imports, the European Union responded by announcing a two-step approach that would impose tariffs worth $26 billion starting on April 1st and fully in place on April 13th. Canada’s Finance Minister, under the leadership of a new Prime Minister, Mark Carney, announced a dollar-for-dollar approach to impose tariffs on U.S. steel and aluminum. On a completely different approach, Mexico is still holding off on reciprocal tariffs, holding daily calls with the U.S. federal administration.
President Trump is expected to announce more tariffs on products such as lumber, agriculture, and the automotive sector. The Chamber stands by the strong belief that imposing tariffs will hurt or local and national economies and increase consumer pieces. We will continue our advocacy efforts to ensure such policies don’t hinder our region’s economic prosperity and global competitiveness and look forward to having you join these efforts in Washington, D.C. in a few weeks.