President Donald Trump has decided to keep new tariffs in place on Mexico, Canada, and China as a pressure tactic to curb the flow of fentanyl into the United States.
Commerce Secretary Howard Lutnick explained that the tariffs would remain until the fentanyl crisis ends, or until the administration feels the threat has been sufficiently mitigated.
Earlier this week, Trump imposed 25% duties on Canadian and Mexican exports, temporarily exempted vehicles from these tariffs, and postponed most other tariffs until early April. Steel and aluminum duties, however, will take effect as scheduled, affecting imports from both Canada and Mexico.
Lutnick dismissed concerns that the tariff increases would trigger an economic downturn, asserting that no recession would result from the measures. He noted that while foreign-made goods may become more expensive for consumers, domestic products would become comparatively cheaper.
Trump framed the tariff policy as part of a broader strategy to strengthen the nation, emphasizing long-term national resilience over short-term market fluctuations.
National Economic Council director Kevin Hassett highlighted the fentanyl objective, stating that the tariffs aim to reduce the tens of thousands of drug‑related deaths and to encourage domestic manufacturing.
Both Mexican President Claudia Sheinbaum and outgoing Canadian Prime Minister Justin Trudeau reported progress in limiting fentanyl shipments, yet Trump remains uncertain whether these efforts warrant the removal of tariff hikes.
Hassett reiterated the administration’s goal of keeping production and jobs within the United States to enhance American welfare and economic prosperity.
