MARCH 2025 - Economic Update [Legacy Content]

Current Signal
Mar 6, 2025
2 min read

SUPPLY

(Import Policy, Customs Enforcement, Supply Chain Disruptions & Shortages)

On Wednesday 03 March the Trump administration followed through on its promise to place tariffs on goods from Canada, Mexico, and China. Some important exemptions to auto industry imports were granted after The President spoke with the CEOs of Ford, GM and Stellantis, but those exemptions are set to expire after a month.

All three countries have responded in kind, and you can find out more about the Tariffs they imposed and the goods they impact below:

Canada

US Tariffs: 25% on all imported goods (excluding exemptions), 10% on energy imports

Retaliatory Tariffs: 25% on a variety of goods worth 30B, 25% on energy exports to New York, Michigan, Minnesota.

In addition to the tariffs announced by Trudeau, Doug Ford The Premier of Ontario intends to impose a 25% tariff on energy exports, and says if things continue to escalate he may end energy exports to the US altogether. Canada and the US share energy infrastructure in some northern states, and Canada supplies the US with both crude oil and natural gas.

Also of concern is rising anti-American sentiment in Canada that has led Canadian retailers to voluntarily remove US goods from their shelves, and Canadian consumers to reject US products and cancel US travel. According to the maker of Jack Daniels, these actions are likely to be more damaging than the tariffs themselves.

Mexico

US Tariffs: 25% on all imported goods (excluding exemptions)

Retaliatory Tariffs: TBA, 09 March 2025

Mexico’s President Claudia Sheinbaum has not announced the specific measures she intends to take in response to Trump’s tariffs, she confirmed her intent to announce a response on Sunday 09 March during an event in Mexico City.

China

US Tariffs: 20% on all imported goods

Retaliatory Tariffs: 10-15% on farm products including produce and livestock, new export controls and customs enforcement actions

While the tariffs announced by China’s ministry of commerce are fairly straightforward and limited in scope, other, less conspicuous policy changes suggest they take Trump administration actions seriously:

Suspension of U.S. lumber imports
Launched anti-circumvention investigations into the import of fiber optic companies
Placed 10 U.S. firms on its unreliable entity list (bans export and import)
Added 15 U.S. companies to its export control list (requires government approval to export)

ACTION ITEMS:

If You Planned To Purchase Items Likely To Be Impacted By Ongoing Trade Disputes, Buy Them Now And Ensure You Have A 6-12 Month Supply
Do Not Delay Car Purchases OR Repairs

SOCIAL MEDIA SPOTLIGHT

Reddit / SaultSteMarie - “The USA is not our friends anymore. Cancel all trips to the USA and stop buying from them”

X (Formerly Twitter) / Chinese Embassy In US (Verified) - “If war is what the U.S. wants, be it a tariff war, a trade war or any other type of war, we’re ready to fight till the end.”