U.S. Treasury Secretary Encourages Canada to Match U.S. Tariffs on Chinese Goods
U.S. Treasury Secretary Scott Bessent has encouraged Canada to follow Mexico in matching U.S. tariffs on Chinese goods, as the two neighbors seek to avoid punishing 25% U.S. tariffs due on Tuesday over fentanyl trafficking.
Progress in Securing Borders
Canadian and Mexican officials have been fanning out across Washington to show the Trump administration that they are making progress in securing their U.S. borders to curb the flow of the dangerous opioid. Bessent stated that Mexico had proposed matching the U.S. tariffs aimed at China, but he did not specify which level.
China’s Reaction
China’s embassy in Washington has responded to the proposed tariffs, stating that Trump’s unilateral tariff hikes would severely violate World Trade Organization rules and hurt both Chinese and U.S. interests. The embassy said that pressuring, coercion, and threat is not the right way to deal with China, and instead, mutual respect is the basic prerequisite.
Meetings and Updates
Canadian Public Safety Minister David McGuinty met with Trump administration officials to discuss progress in securing Canada’s borders. McGuinty stated that Canada has made significant adjustments, investments, and improvements on the border and has spent the entire week communicating those results to their counterparts in Washington. Mexican Economy Minister Marcelo Ebrard also met with U.S. officials, stating that the U.S. and Mexico have a great future working together, but did not provide details on discussions over the U.S. tariff deadline.
Fentanyl Trafficking and Extraditions
Trump cited insufficient progress in reducing fentanyl overdose deaths in the U.S. for the planned duties on more than $900 billion worth of annual imports from Canada and Mexico. Mexico has staged its largest mass extradition of suspected drug cartel members in 10 years, including a 1980s kingpin who spent decades in prison for the murder of a U.S. drug enforcement agent and 28 other suspects. The extradited suspects included younger leaders accused of moving fentanyl into the U.S.
Trade Measures
Mexico’s Deputy Economy Minister Vidal Llerenas stated that Mexico could adopt other trade measures beyond the recent tariffs it imposed on certain imports to reduce low-value shipments from China. The U.S. earlier this month moved to suspend the "de minimis" duty-free exemption for packages valued below $800 that has allowed fentanyl and its precursor chemicals to arrive unscreened through U.S. airports and border crossings. However, the U.S. Customs and Border Protection agency paused the suspension until it could put effective screening measures in place.
Conclusion
The U.S. Treasury Secretary’s call for Canada to match U.S. tariffs on Chinese goods comes as the two nations seek to avoid punishing 25% U.S. tariffs due on Tuesday over fentanyl trafficking. The proposed tariffs have sparked concerns over the impact on global trade and the potential for retaliatory measures from China.
Frequently Asked Questions
Q: What are the U.S. tariffs on Chinese goods?
A: The U.S. has imposed a 10% duty on all Chinese imports, with plans to double it to 20% starting from Tuesday.
Q: Why is the U.S. imposing tariffs on Chinese goods?
A: The U.S. is imposing tariffs on Chinese goods due to insufficient progress in reducing fentanyl overdose deaths in the U.S.
Q: How has China responded to the proposed tariffs?
A: China’s embassy in Washington has stated that the U.S. tariffs would severely violate World Trade Organization rules and hurt both Chinese and U.S. interests.