T-Day on March 4. 2025 is not a holiday. It is the day when the U.S. is scheduled to levy significant tariffs on goods imported from Canada, Mexico and China.

Canada snd Mexico: 25% tariffs on all goods imported from these countries. The exception are energy resources imports (e.g. crude oil) from Canada, which will face 10% tariffs. Existing softwood  lumber imports from Canada will increase from 14.5% by another 25%.

This follows a one month delay in implementing tariffs to give time for negotiations on tightening the border to prevent drugs like fentanyl from entering the U.S.

President Trump has indicated that tariffs will be implemented because not enough progress has been made.

China: An additional 10% tarifffs levied on imported goods from China on top of existing duties.

President Trump has indicated that the additional tariffs are in response to fentanyl issues involving China.

The additional tariffs, if implemented, would affect  the auto industry, manufacturing, agriculture, consumer goods among others.

Companies would face the dilemma of either seeing margins squeezed or pasfing  on the higher costs.

There is also the risk of unintended consequences sequences, such as disrupting supply chains and retaliation that morphs into a trade war.

Whatever the case, March 4 is T-Day when additional tariffs will be implemented on Imports from Canada, Mexico and China. The focus will not only be on the U.S. levying tariffs but how the others respond with the ridk if a trade war.

From a trader’s perspective, the focus will be on whether there is another reprieve or if not, how markets react to the reality of tariffs rather than expectations.

In the meantime, the focus will be on T-Day and perhaps more important whether it leads to negotiations and concessions afterward that diffuse the situation, particularly with Canada and Mexico.

Addwndun:

March 3, 2025

Trump announces 25% tariffs on Canada, Mexico will take effect at midnight: ‘They’re all set’