U.S. Treasury Secretary Scott Bessent urged Canada on Friday to consider aligning its tariffs on Chinese goods with those of the U.S., following Mexico’s lead. This comes as both neighbours work to avoid the upcoming 25% U.S. tariffs tied to fentanyl trafficking, set to take effect on Tuesday.
Canadian and Mexican officials have been busy in Washington, trying to convince President Donald Trump’s administration that efforts to secure their borders and curb the flow of fentanyl are underway.
In an interview with Bloomberg Television, Bessent revealed that Mexico had shown willingness to match U.S. tariffs on China but did not disclose specific rates. Earlier this month, Trump imposed a 10% tariff on all Chinese imports, later announcing an increase to 20%, effective Tuesday.
“It would be a good move if Canada followed suit,” Bessent said, suggesting a united approach to limit Chinese imports, which he described as stemming from a highly imbalanced economy.
China’s Washington embassy criticized the U.S. tariffs, stating they breach World Trade Organization rules and harm both nations. Embassy spokesperson Liu Pengyu said mutual respect, not coercion, is essential in resolving disputes.
Neither the Canadian nor Mexican governments immediately commented on Bessent’s remarks.
Canadian Public Safety Minister David McGuinty, wrapping up a four-day visit to Washington, emphasized that Canada is taking swift action to enhance border security.
“We’ve made significant upgrades and investments at the border,” McGuinty said, after meeting with U.S. Homeland Security Secretary Kristi Noem and border czar Tom Homan.
Trump Tariffs on Canada and Mexico
Meanwhile, Mexican Economy Minister Marcelo Ebrard met with U.S. Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer. While Ebrard described the meeting as cooperative, he did not provide details on discussions regarding the looming tariff deadline.
Trump justified the planned tariffs on over $900 billion of annual imports from Canada and Mexico by citing inadequate progress in reducing fentanyl-related deaths in the U.S.
In response, Mexico carried out its largest extradition of alleged drug cartel members in a decade.
This included Rafael Caro Quintero, a prominent figure from the 1980s, and 28 others accused of trafficking fentanyl into the U.S. Quintero, 72, pleaded not guilty to U.S. drug charges in a New York court, charges that could lead to the death penalty.
Mexican Deputy Economy Minister Vidal Llerenas hinted that Mexico might explore additional trade actions beyond the recent tariffs introduced to limit low-cost imports from China.
The U.S. recently suspended its “de minimis” duty-free exemption for shipments valued under $800, a loophole often exploited for fentanyl and precursor chemicals entering the country. However, the suspension was paused by U.S. Customs and Border Protection as they work on implementing better screening measures.
The Centres for Disease Control and Prevention reported 72,776 deaths in 2023 from synthetic opioids, primarily fentanyl, highlighting the gravity of the crisis.
The new U.S. tariffs on China are set to coincide with Beijing’s parliamentary meetings, a key political event where economic priorities for 2025 will be unveiled. The Trump administration’s firm stance leaves China with limited time to respond with countermeasures.
This marks an increasingly hardline approach toward Beijing, despite Trump’s earlier decision to back away from even higher tariffs when he first took office.
