Trump Says Stiff Tariffs on Canada, Mexico to Go Into Effect Tuesday
WASHINGTON — President Donald Trump said Monday the 25% tariffs he’s been dangling over the heads of officials in Canada and Mexico like the sword of Damocles for more than a month will go into effect on Tuesday.
“The tariffs, they’re all set. They go into effect tomorrow,” Trump said during a gathering in the Roosevelt Room of the White House to celebrate a significant economic development announcement involving semiconductor chips.
The president added that there simply is “no room left” for either Canada or Mexico to make a deal and be granted a reprieve from the tariffs before midnight tonight.
It was exactly a month ago that Trump agreed to a 30-day pause on tariff threats against America’s two largest trading partners as they worked out steps to address his concerns about border security and drug trafficking.
Trump on Monday said despite the pause, “vast amounts” of fentanyl from China had continued to pour into the United States through the two nations.
He also encouraged vehicle manufacturers who have built auto plants in Mexico in recent years to relocate their operations to the United States to avoid the penalties.
“Build here … they have no tariffs,” he said.
The president also announced that reciprocal tariffs will start on April 2, which will cover imports from all nations that levy import taxes on U.S. goods.
“I wanted to make it April 1, but I didn’t want to do it on April Fools’ Day,” he said.
Earlier in the day, on his Truth Social platform, Trump also announced that tariffs of foreign agricultural products will be imposed the same day.
“To the Great Farmers of the United States: Get ready to start making a lot of agricultural products to be sold inside of the United States. Tariffs will go on external products on April 2nd. Have fun!” he wrote.
The tariff news largely overshadowed a big manufacturing win for the president.
With Commerce Secretary Howard Lutnick, and the White House’s AI and Crypto Czar David Sacks looking on, Trump announced that Taiwan Semiconductor Manufacturing Co., the world’s largest dedicated chip foundry, will invest $100 billion in U.S. chips manufacturing over the next four years.
This on top of the $65 billion investment the company has already made in its facility in the U.S. state of Arizona.
Though the Biden administration had tried to bolster chip manufacturing here by signing the $280 billion CHIPS and Science Act, until now TSMC has largely kept its most advanced chipmaking for its native Taiwan.
On Monday, Trump’s stiff tariff policy appeared to make the difference.
“Semiconductors are the backbone of the 21st century economy. And really, without the semiconductors, there is no economy,” the president said. “Powering everything from AI to automobiles to advanced manufacturing, we must be able to build the chips and semiconductors that we need right here in American factories with Americans skill and American labor.”
“This $100 billion in new investment will go into building five cutting-edge fabrication facilities in the great state that we just discussed, Arizona, and will create thousands of jobs — many thousands of jobs, and they’re high-paying jobs,” Trump added.
TSMC CEO C.C. Wei agreed.
“It’s going to create thousands of high-paying jobs. … We are going to produce many chips to support AI’s progress and to support the smartphone’s progress. I want to thank President Trump again for his support,” he said.
Dan can be reached at [email protected] and @DanMcCue
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