Canada, Mexico Intensify Fentanyl Talks to Avoid US Tariffs

Canada and Mexico are intensifying efforts this week to avoid the imposition of 25% tariffs on their exports to the U.S., which are contingent on the effectiveness of their border security and fentanyl control measures ahead of a March 4 deadline. Both countries have implemented security enhancements that have provided a temporary reprieve from the tariffs, which could disrupt the integrated North American economy. Legal expert Dan Ujczo indicated that the upcoming negotiations and new reports from the Department of Homeland Security will be pivotal in determining the tariff's future. However, he cautioned that even if a suspension is granted, the Trump administration is likely to maintain the tariff threat until there is clear evidence of reduced migrant and fentanyl flows. The White House and relevant departments have yet to comment on the negotiations, which could affect over $918 billion in U.S. imports, including autos and energy. The situation is further complicated by recent increases in tariffs on steel and aluminum that also impact trade relations with Canada and Mexico.