Trade Tensions Rise as U.S. Tariff Deadline Looms

Canada and Mexico face pressure to enhance border security and curb fentanyl trafficking to avoid 25% U.S. tariffs. Upcoming negotiations will determine if the tariffs are suspended, impacting numerous imports. Despite progress, Canada and Mexico remain at risk as the U.S. demands further action.

Canada and Mexico are intensifying their efforts to avoid a crippling 25% tariff on exports to the U.S. as they strive to demonstrate effective border security measures and fentanyl trafficking curbs ahead of the March 4 deadline. The two countries have enhanced their security protocols, winning a brief reprieve from potentially damaging tariffs.

This week's negotiations, alongside reports from the Department of Homeland Security, will decide if the Trump administration extends the tariff suspension. Trade expert Dan Ujczo suggests the tariff threat will remain until clear evidence shows border measures are curbing illegal flows of fentanyl and migrants.

Despite recent diplomatic dialogues, including Canadian PM Justin Trudeau's discussions with President Trump, skepticism remains. Additional tariffs on steel, aluminum, and automobiles loom, marking a potential early renegotiation of the U.S.-Mexico-Canada trade agreement signed in 2020.

(With inputs from agencies.)