US President Donald Trump said on Monday that 25 per cent tariffs on imports from Mexico and Canada will start on Tuesday, sparking renewed fears of a North American trade war.
Mr Trump provided a one-month delay in February as both countries promised concessions, but he said there was “no room left for Mexico or for Canada” to avoid the steep new tariffs.
He has said the tariffs are to force the two US neighbours to increase their fight against fentanyl trafficking and illegal migration. US stock markets moved sharply lower after Mr Trump’s comments.
He said he would also add another 10 per cent tariff on goods from China, on top of the 10 per cent he put in place last month.
Earlier on Monday, Mexican President Claudia Sheinbaum said that Mr Trump has the final word on introducing tariffs, but that her government was in contact with US authorities.
"We have to see if they happen or if they happen halfway. We have a plan for both cases," she said. "Anything is possible. Obviously, we don't want there to be tariffs but now, at this moment, that depends on President Trump."
Canada's Foreign Minister Melanie Joly, meanwhile, simply told reporters: "We're ready."
