The President of the United States, Donald Trump, confirmed the implementation of 25% tariffs on Mexico and Canada starting this March 4, marking the end of the one-month negotiation period with President Claudia Sheinbaum.
When asked if there could be an agreement to delay or avoid the implementation of the measure, Trump stated, “There is no more room for Mexico or Canada, the tariffs take effect tomorrow. To be clear, enormous amounts of fentanyl have entered our country from Mexico, and as you know, the product comes from China, passes through Mexico or Canada.”
🚨 It’s official. Starting tomorrow, 25% tariffs on Mexico and Canada.
There is no room for negotiation, says Donald Trump
[📹 @TelemundoNews ] pic.twitter.com/k37yaGaKYz
— Manuel Lopez San Martin (@MLopezSanMartin) March 3, 2025
In addition to this, the U.S. president announced that starting April 2, tariffs will also be applied to imported agricultural products.
Just minutes after the announcement, the Mexican peso depreciated, and the dollar surpassed 20.74 pesos in the exchange rate.
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Trump doubles tariffs on China
In addition to reiterating that the tariffs on Mexico and Canada will take effect at the first minute of March 4, President Trump also signed an executive order doubling the customs tariffs on China, increasing them from 10% to 20%.
This decision, according to the president, is due to China’s inability to combat “the flood of fentanyl” entering the United States.
What will be the economic consequences of these tariffs?
The imposition of tariffs could significantly impact the Mexican economy. According to data from the Bank of Mexico, the exchange rate rose following Trump’s announcement, closing at 20.46 pesos per dollar. Analysts warn that if the 25% tariff is applied to all Mexican exports, the dollar could reach up to 24 pesos, with a GDP contraction of 2% in 2025.
Meanwhile, the U.S. government has also pledged to combat arms trafficking into Mexico, arguing that this issue has strengthened drug cartels. In response, Sheinbaum has emphasized that the fight against arms trafficking is crucial for Mexico’s security.
