On March 4, 2025, President Trump announced a 25% tariff on imported goods from Canada and Mexico, effective immediately. The tariffs aim to address fentanyl trafficking and encourage manufacturing within the united states.
- Trump announces $100 billion TSMC investment.
- 25% tariffs on Canada and Mexico imposed.
- Tariffs target fentanyl trafficking issues.
- No negotiation room for Canada or Mexico.
- TSMC's total US investment reaches $165 billion.
The announcement came during an event at the White House where Trump emphasized that there would be no room for negotiation regarding the tariffs. He stated that this move would benefit American car manufacturers by encouraging them to relocate their production closer to the U.S. market. Trump’s administration has been under pressure regarding drug trafficking issues, particularly related to fentanyl.
Key details surrounding the new tariffs include:
- The tariffs were initially proposed for February but postponed for negotiations.
- Trump had previously indicated potential delays but confirmed the March deadline.
- A further increase of 10% on existing Chinese import tariffs was also announced.
This decision follows weeks of speculation about its implementation, which has affected market stability. Commerce Secretary Howard Lutnick noted that while Canada and Mexico have made progress in curbing illegal immigration, they have not adequately addressed drug trafficking concerns.
The announcement coincided with Taiwan Semiconductor Manufacturing Company’s (TSMC) plans to invest $100 billion in U.S. facilities, totaling $165 billion in investments since receiving support from the CHIPS Act. This investment is partly influenced by Trump’s tariff threats aimed at semiconductor imports.
This latest move by President Trump underscores his administration’s focus on domestic manufacturing while addressing drug-related issues through economic measures against neighboring countries.
