Experts believe the main purpose of the tariffs was to curb the flow of illegal fentanyl into the US.
On February 4, 2025, President Donald Trump announced a 30-day suspension of tariffs on Mexico and Canada following talks with their leaders. However, the 10% tariff on Chinese exports went into effect on February 3, 2025.
Trump had previously imposed 25% tariffs on Mexico and Canada and a 10% tariff on China, citing a trade deficit of over $480 billion with these countries. The tariffs would remain until they took action to reduce migration and drug trafficking, particularly fentanyl. In response, Mexico sent 10,000 National Guard troops to its border, while Canada agreed to pause tariffs for 30 days and take measures to fight drug trafficking and illegal immigration.
The 10% tariff on China led to retaliatory tariffs, including on coal and crude oil. Experts argue that the primary goal of the tariffs was to stop fentanyl trafficking, a major cause of overdose deaths in the US.
Though the tariff suspension offers a temporary pause, analysts believe further negotiations are likely, particularly with Mexico, to address the trade deficit and illegal drug flow. Trump has also sought a “final economic deal” with Canada.
