Saturday, August 16, 2025

Mexico, Canada Must ‘Shut Border’ to Avoid Tariffs Says Trump’s Commerce Pick

Howard Lutnick, President Donald Trump’s nominee for Commerce Secretary, said on Wednesday that Mexico and Canada could avoid new tariffs set for February 1 if they strengthen their border security, while advocating for broader trade measures to boost US manufacturing.

During his confirmation meeting, Lutnick outlined two distinct approaches: an immediate 25% tariff on Mexico and Canada linked to migration and fentanyl issues, and a broader trade study due by April 1.

“If we are your biggest trading partner, show us the respect, shut your border,” Lutnick said about the February 1 deadline. He added that both countries are “acting swiftly” and could avoid tariffs if they meet requirements.

The commerce nominee favors country-level tariffs over targeted measures. “My way of thinking, and I discussed this with the president, is country-by-country. Macro. Let America make it more fair,” he told senators, dismissing inflation concerns as “nonsense.”

Trump’s administration has outlined three tariff categories: the 25% levy on Canada and Mexico, sector-specific tariffs on items including semiconductors and metals, and a possible universal import tariff above 2.5%.

Press Secretary Karoline Leavitt confirmed Monday that the February 1 deadline for Mexico and Canada remains in place, with potential 10% tariffs on China also under consideration.


Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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