The United States has announced that it will proceed with imposing tariffs on goods from Canada and Mexico starting this Tuesday, June 4th. However, the exact tariff rates may be adjusted from the previously announced 25%, leaving room for negotiation.

According to US Commerce Secretary Howard Lutnick's interview with Fox News on June 2nd, the tariffs will be implemented as planned. Lutnick stated, "Tariffs will be imposed on Mexico and Canada on Tuesday. The exact tariff rates will be negotiated by President Donald Trump and his team."   

This decision follows President Trump's initial announcement last month to impose a 25% tariff on both countries, which was later postponed by a month just a day before its scheduled implementation. The postponement came after last-minute phone calls between President Trump and the leaders of Mexico and Canada.

President Trump has cited concerns over the continuous flow of fentanyl, a highly potent opioid, and illegal immigration across the borders with these countries as the primary reasons for the tariffs. Secretary Lutnick's recent statement suggests that the tariff rates could be lowered depending on the actions taken by the two nations.   

When asked about the possibility of reduced rates, Lutnick responded, "There is definitely a possibility." He acknowledged that both Mexico and Canada have taken some measures at their borders, but emphasized that "fentanyl continues to flow, and its ingredients are made in China." He also mentioned that an additional 10% tariff would be imposed on goods from China starting the same day.

The US had already implemented a 10% tariff on Chinese goods last month. With the additional 10% tariff scheduled for June 4th, coinciding with the opening of China's "Two Sessions," the total additional tariff on Chinese goods will reach 20%.   

US Treasury Secretary Scott Besant highlighted Mexico's consideration of imposing tariffs on Chinese goods in alignment with the US. He suggested that such a move by Mexico could contribute to lowering the US tariffs on Mexican goods.   

In an interview with CBS News, Secretary Besant stated, "We will see if the Mexican government follows through with their proposal (to impose tariffs on China). We have not heard from Canada yet, but this is a very good start."

When questioned about whether Mexico's tariffs on China could offset the US tariffs on Mexico, Besant replied, "We will see by Tuesday. I believe this is a good starting point for North America to combat unfair trade policies."

[Copyright (c) Global Economic Times. All Rights Reserved.]