Posted on 03 Feb 2025
The United States has, as expected, imposed a 25% additional tariff on imports from Canada and Mexico, and 10% additional tariff on imports from China, effective 1 February. Energy resources from Canada will have a lower, 10% tariff, Kallanish notes.
In a statement published Saturday, the White House justifies the move by citing a national emergency created by the flow of contraband drugs like fentanyl to the US.
“Chinese officials have failed to take the actions necessary to stem the flow of precursor chemicals to known criminal cartels and shut down money laundering by transnational criminal organizations,” it notes. “In addition, the Mexican drug trafficking organizations have an intolerable alliance with the government of Mexico.”
Mexican gangs are meanwhile operating fentanyl and nitazene synthesis labs in Canada, it adds.
Mexican President Claudia Sheinbaum responded with scathing criticism to the accusation of gang collusion with her government (see separate story).
The blanket tariffs are likely to have a significant impact on the steel supply chain as well as US efforts to reduce inflation (see Kallanish passim).
Source:Kallanish
