Trump adds further ambiguity to tariffs debate
The president and his Commerce secretary offered inconsistent and at times conflicting statements regarding the timeline for imposing tariffs on trading partners.
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“April 2 ... for everything,” Trump stated during a Cabinet meeting at the White House when questioned about the anticipated tariffs on the North American nations. "I'm not stopping the tariffs. Millions of people have died because of the fentanyl that comes over the border," he added.
Trump's comments in the Oval Office came just two days after he insisted that the 25 percent tariffs "are going forward on time, on schedule," on March 4.
When seeking clarification, a White House spokesperson mentioned that the tariffs on Mexico and Canada are still slated to begin on Tuesday. "That [timeline] is still intact. He's still reviewing progress," made by both countries to address Trump's issues, said the anonymous official who provided insights into internal discussions. "I think things just got muddled in there," they explained.
"Reciprocal tariffs are still on for April 2," the spokesperson clarified, referencing tariffs Trump intends to impose on all trading partners based on the trade barriers they set against U.S. goods.
Commerce Secretary Howard Lutnick also mentioned during the meeting that if Canada and Mexico demonstrate "they've done an excellent job" regarding fentanyl, the tariffs could be postponed beyond March 4. However, he indicated that the countries may still face tariffs, stating: "The big transaction is April 2."
The inconsistent communications from the White House concerning trade issues are contributing to uncertainty, impacting financial markets, and prompting foreign leaders to seek ways to avert significant tariff increases.
This confusion is likely to complicate meetings with foreign officials visiting Washington, D.C., as they try to negotiate against tariffs from the U.S. President. Top diplomatic and security representatives from Mexico are en route to Washington for discussions with Secretary of State Marco Rubio this week, according to President Claudia Sheinbaum, who reported that preparations for these talks have been ongoing for several days.
New U.K. Prime Minister Keir Starmer will also be in the U.S. capital this week for discussions with Trump, continuing a trend of world leaders contacting the president to address tariffs and various issues. French President Emmanuel Macron had visited the White House on Monday.
Macron's visit seems to have produced little regarding trade. On Wednesday, Trump disclosed that he is prepared to impose a 25 percent tariff on the European Union. “We have made a decision and we’ll be announcing it very soon. It’ll be 25 percent, generally speaking, and that will be on cars and all the things,” he mentioned during the Cabinet meeting, without clarifying if the 25 percent was the reciprocal tariff rate or an additional tariff on top of that.
"The European Union was formed to screw the United States, let's be honest," Trump asserted.
The president is reportedly "now more intently looking at the EU situation," a White House official confirmed on Wednesday.
Canada and Mexico were among the initial targets for Trump after his election, as he pledged in November to impose new tariffs on these North American neighbors unless they took stronger action against undocumented migrants and fentanyl trafficking. He subsequently signed executive orders raising duties on all Canadian and Mexican imports to 25 percent, excluding Canadian energy products, which would incur a 10 percent tariff, effective February 4. After extensive negotiations with Canadian and Mexican leaders, Trump agreed to extend the tariff pause for an additional month, until March 4.
Earlier on Wednesday, a White House aide verified that negotiations with Canada and Mexico regarding a longer suspension of the tariffs "are ongoing," and, echoing Lutnick, left the possibility open for further advancements in those discussions. “As of now, they're still going into effect on [March] 4th, pending any changes or breakthroughs in negotiations.”
These tariffs are part of a broader pattern of trade restrictions Trump has threatened since taking office, potentially altering the U.S.'s relationships with its trading partners.
Most recently, Trump directed his Commerce Department to investigate the possibility of new tariffs on copper. This follows his previous threats to implement 25 percent tariffs on steel and aluminum—items commonly sourced from Canada and Mexico—also set to begin next month. Additionally, Trump has expressed intentions to impose tariffs on imports of autos, lumber, pharmaceuticals, and semiconductors.
Rohan Mehta contributed to this report for TROIB News