President Trump addresses the nation in the Roosevelt Room of the White House on March 3, 2025, after announcing a significant investment by Taiwan Semiconductor Manufacturing Company in U.S. manufacturing.
President Trump announced on Monday new tariffs of 25% on imported goods from Canada and Mexico, effective immediately, after weeks of speculation regarding adjustments to these rates.
Trump stated that these tariffs aim to penalize Canada and Mexico for fentanyl trafficking, while also promoting a shift of auto manufacturing and other industries back to the United States.
“If they’re going to build car plants, they would be better off building here, where they can sell their products in our market,” Trump remarked to reporters at the White House.
Additionally, Trump plans to implement another 10% tariff on imports of Chinese goods, increasing from an initial 10% imposed last month.
Uncertainty Surrounds Tariff Implementation
The fate of Trump’s tariff threats has created uncertainty in the markets, with many questioning whether he would proceed with the 25% tariffs.
Initially, Trump announced that the tariffs would begin on February 1 but later allowed leaders from both nations time to address illegal immigration and drug trafficking issues.
Recently, he mentioned that the tariffs would be delayed until April 2, but he changed the deadline to March 4 shortly thereafter.
Commerce Secretary Howard Lutnick highlighted the ongoing uncertainty regarding the tariffs and stated that negotiations with Canada and Mexico remained dynamic.
Trump Declares Final Decision on Tariffs
During a recent engagement with Taiwan Semiconductor Manufacturing Company (TSMC), Trump reaffirmed his decision to impose the 25% tariffs.
When asked about the possibility of negotiating tariff rates, Trump responded firmly: “There is no room left for negotiations with Mexico or Canada.”
The tariffs will take effect immediately, and both Canada and Mexico have expressed intentions to retaliate.
Meanwhile, TSMC announced plans to invest $100 billion in semiconductor manufacturing in Arizona, raising its total U.S. investment to approximately $165 billion.
Lutnick noted that TSMC has benefited from a $6 billion grant under the CHIPS Act, which incentivized its investment to escalate to $100 billion due to the impending tariffs on semiconductor imports.
