Tariffs on Canadian and Mexican goods delayed, China's take effect

The tariffs President Donald Trump planned to put in place on Canadian and Mexican goods have been delayed for a month, though duties on products from China went into effect just after midnight. In response China announced its own tariffs on U.S. goods would begin Feb. 10.

Initially a 25 percent duty was announced for all imports from Mexico as well as most goods from Canada, while Trump enacted his plans for a 10 percent tariff on goods from China. 

In order to delay the tariffs, Mexican President Claudia Sheinbaum agreed to immediately supply 10,000 Mexican soldiers on the border separating Mexico and the United States. Trump also spoke with Canadian Prime Minister Justin Trudeau, who said Canada will implement a $1.3 billion border plan, including nearly 10,000 of its own frontline personnel protecting the border.
 
"Proposed tariffs will be paused for at least 30 days while we work together," said Trudeau.

Trump said the U.S. and Mexico agreed "to immediately pause the anticipated tariffs for a one-month period during which we will have negotiations headed by Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent and Secretary of Commerce Howard Lutnick, and high-level Representatives of Mexico.”

Should the announced tariffs on Canadian goods go into affect, the result is expected to be higher prices for U.S. consumers: about 85 percent of Ontario’s greenhouse production is exported to U.S. markets. Speaking in December, Ron Lemaire, president of the Canadian Produce Marketing Association, said "Any type of tariff will drive up costs to the consumer — and Canadian buyers will start to look at other suppliers.”

This is a situation in which the produce industry has a lot invested. “FMI and our member companies stand ready to work with the Trump administration to help reduce inflationary regulations and improve the buying power of American consumers,” said Leslie G. Sarasin, president and CEO of FMI – The Food Industry Association. "American consumers value local farmers and local food products, but also availability of products 12 months of the year, which requires imports of food products. With 1.6 percent retail and 7.5 percent food manufacturing net margins, tariffs will put incredible pressure on our members. New tariffs will also drive up the cost of doing business and food prices at a time consumers are extremely concerned about prices.”