WASHINGTON, Feb 26 (Reuters) - In a move that could significantly impact international trade, U.S. President Donald Trump has raised the possibility of imposing new tariffs on imports from Mexico and Canada. These tariffs, potentially effective from April 2, may include a 25% reciprocal tariff on European cars and other goods.
During a cabinet meeting on Wednesday, President Trump indicated that the new tariffs might come into effect on April 2, although a previous deadline of March 4 for the 25% tariffs on Mexican and Canadian goods remains in place. The final decision is pending a review of actions taken by Mexico and Canada to secure their borders and address the flow of migrants and the opioid fentanyl into the U.S.
Trump's announcement led to fluctuations in the value of the Canadian dollar and Mexican peso against the U.S. dollar. While Canada's Finance Ministry and Mexico's Economy Ministry have not commented on the matter, U.S. Commerce Secretary Howard Lutnick stated that fentanyl-related actions are paused for 30 days, with tariffs also anticipated on April 2.
President Trump has targeted early April for implementing reciprocal tariffs on the European Union. These tariffs would align with the import duty rates of other countries and address other trade restrictions. Trump's trade advisers perceive European countries' value-added taxes as equivalent to a tariff.
Trump mentioned that the EU poses a unique challenge compared to Canada, citing issues such as the EU's resistance to accepting U.S. cars and farm products. Roberta Metsola, president of the European Parliament, is currently in Washington to meet with U.S. lawmakers.
Also on Wednesday, the U.S. Senate confirmed Jamieson Greer as the new U.S. Trade Representative with a 56-43 vote. Greer, who previously served as chief of staff to former USTR Robert Lighthizer, received bipartisan support, including votes from five Democrats.
Trade groups welcomed Greer's confirmation, praising his commitment to a pragmatic trade policy that supports U.S. businesses, farmers, and workers. Greer emphasized the importance of renegotiating the U.S.-Mexico-Canada Agreement (USMCA) to prevent China from exploiting it as a backdoor into the U.S. market.
During his Senate confirmation hearing, Greer indicated a desire to review and potentially tighten automotive content rules within the USMCA. He suggested examining the rule of origin for automobiles and other sectors to evaluate the need for restrictions on foreign content.
Reporting by David Lawder and Andrea Shalal; additional reporting by Bo Erickson and Ryan Jones in Washington, Brendan O'Boyle in Mexico City, and Ismail Shakil in Ottawa; Editing by Dan Burns, David Gregorio, and Paul Simao.
