US tariffs on Canada and Mexico will go into effect on Tuesday (March 4), as originally planned, but President Donald Trump would determine whether to stick with the original 25 per cent level, America's commerce secretary, Howard Lutnick, said on Sunday.
"There are going to be tariffs on Tuesday on Mexico and Canada. Exactly what they are, we're going to leave that for the president and his team to negotiate," Lutnick told the Fox News program "Sunday Morning Futures".
"That is a fluid situation," he said.
The 30-day pause on duties for Canada and Mexico, which President Trump tied to illegal border crossings and the flow of fentanyl into the US, is set to expire on March 4.
Lutnick said Canada and Mexico have "done a reasonable job" securing their borders with the United States, though the deadly drug fentanyl continues to flow into the country. He also mentioned that President Trump is expected to raise tariffs on China on Tuesday unless the country ends fentanyl trafficking into the US.
The American commerce secretary's remarks were the first indication from the Trump administration that it may not impose the full threatened 25 per cent tariffs on all goods from Mexico and non-energy imports from Canada.
President Trump sowed confusion last week when he mentioned a possible April 2 deadline in connection with tariffs on Canada and Mexico, but later reaffirmed the Tuesday deadline and said he would add another 10 per cent tariff on Chinese goods on Tuesday, effectively doubling the duties imposed on February 4.
When a reporter asked if he would continue the pause on tariffs as there has been a "90 per cent drop in border crossings" since he issued the threat, the President at the time said, "I'm not stopping the tariffs, no. Millions of people have died because of the fentanyl that comes over the border...Yeah, they've been good, but that's also due to us. Mostly due to us."
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