The Blubber

Trump Signals Tariffs on Mexico and Canada Could Rise Beyond 25%

March 8, 2025 | Washington, D.C.

President Donald Trump indicated that tariffs on Mexico and Canada could climb higher than the 25% rate imposed earlier this week, adding to uncertainty surrounding his trade policies.

His comments, made during a Friday interview with Fox Business host Maria Bartiromo, came a day after he temporarily paused the tariffs until April 2 for Mexican and Canadian goods covered under the USMCA trade agreement, which he originally brokered during his first term. The move provided a brief reprieve for two of the U.S.'s largest trading partners.

Tariffs Could Increase Further

When asked whether businesses would receive more clarity on his trade strategy, Trump responded, "I think so, but, you know, the tariffs could go up as time goes by, and they may go up. I don’t know if it’s predictability."

Earlier this week, Trump imposed new tariffs on Canada and Mexico, while also doubling levies on China to 20%. He framed the measures as a way to pressure those countries into taking stronger action against the flow of illicit drugs and undocumented migrants into the U.S.

However, following a market selloff and pushback from some Republicans and industry leaders in automotive and agriculture, Trump signed an order on Thursday that delayed the tariff increases until April 2.

April 2 Deadline Looms

Despite the pause, Trump reiterated on Friday that Mexico, Canada, and other nations will face reciprocal tariffs once the new deadline arrives.

“April 2, it becomes all reciprocal. What they charge us, we charge them. It’s a big deal,” he said. “But this is short-term, and I felt that for the good of American carmakers and the USMCA.”

The uncertainty surrounding Trump’s trade agenda has left businesses on edge, with many bracing for potential economic fallout if tariffs rise further.