US President Donald Trump announced Monday that his Administration will end the month-long suspension on tariffs targeting Canada and Mexico, with the import taxes set to take effect next month. The decision, which could have significant economic implications, was disclosed during a White House news conference alongside French President Emmanuel Macron.

“We’re on time with the tariffs, and it seems like that’s moving along very rapidly,” Trump said, according to APNews. He emphasised that the planned tariffs, which he describes as “reciprocal”, remain on schedule to begin in April.

Trump has long argued that other nations impose unfair import taxes that harm U. manufacturing and jobs. However, APNews reports that businesses and economists have raised alarms about the potential for these tariffs to slow economic growth and exacerbate inflation. Despite these concerns, Trump insisted the tariffs would ultimately benefit the U. economy by generating revenue to reduce the federal deficit and creating new jobs. “Our country will be extremely liquid and rich again,” he said.

According to APNews, most economists believe that the burden of these taxes will fall largely on consumers, retailers, and manufacturers reliant on global supply chains. Industries such as automotive manufacturing, which depend on raw materials like steel and aluminum already subject to separate 25 per cent tariffs, are expected to face additional challenges.

In an interview with Fox News’ Special Report later Monday, Macron expressed optimism about persuading Trump to avoid a trade war. “We don’t need a trade war,” Macron said, as reported by APNews. “We need more prosperity together.”

At the joint news conference earlier in the day, Macron suggested further trade negotiations could yield common ground. “We want to make a sincere commitment towards fair competition where we have smooth trade and more investments,” he said through a translator.

Mexican President Claudia Sheinbaum meanwhile expressed confidence Monday in her Administration’s ability to reach an agreement with the US before the tariff deadline. “We would need to be reaching important agreements this Friday,” Sheinbaum told reporters, according to
APNews. She also highlighted ongoing communication between both governments and reiterated her willingness to speak directly with Trump if necessary.

Sheinbaum further urged the US to address its own drug distribution and consumption issues rather than focusing solely on production in Mexico. Mexico has already deployed 10,000 National Guard members to its northern border as part of its efforts to curb illegal immigration and drug smuggling.

While Canada is less implicated in fentanyl smuggling compared to Mexico, it has introduced measures aimed at addressing US concerns. According to APNews, Canadian energy products such as oil and electricity will face a lower 10 per cent tariff compared to the 25 per cent rate applied to most other imports.

The tariffs aim not only to address immigration and drug trafficking issues but also to match import tax rates imposed by other countries. However, APNews notes that retaliatory measures from Canada, Mexico, and Europe could escalate into a broader trade conflict. Yale University’s Budget Lab estimated that these tariffs could reduce average US incomes by US$1,170 to US $1,245 annually if fully implemented.

As businesses and consumers brace for potential fallout, questions remain about whether Trump’s tariff threats are primarily a negotiating tactic or part of a broader economic strategy.