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Trump Confirms Canada and Mexico Tariffs Will Take Effect on March 4

KEY POINTS

Tariffs would apply to over $918 billion in Canadian and Mexican imports and impact major sectors like medical devices, pharmaceutials, automotive, electronics, and energy.
Tariffs are part of a broader plan for 'reciprocal' trade barriers and duties.
Health systems use SRS tariff reports to gauge exposure.

By Lauren Palmer February 25, 2025

President Donald Trump said tariffs on Canada and Mexico will take effect next week, with an additional 25% tariff on all imports except for a lower 10% tariff on Canadian energy.

President Trump reaffirmed Monday that tariffs on imports from Canada and Mexico will take effect on March 4^th, ending a temporary pause granted after both countries pledged to increase border security measures.

“The tariffs are going forward on time, on schedule,” Trump said during a White House press conference when asked whether the postponed measures would soon be reinstated. The president’s decision underscores his administration’s broader push for what he calls “reciprocal tariffs,” aimed at correcting what he describes as decades of trade imbalances and inadequate enforcement of border security.

Trump’s executive orders, initially announced on Feb. 1 affect over $918 billion worth of imported goods. Although temporarily postponed on Feb. 3 after both countries committed to border security improvements—with Mexico deploying 10,000 national guard troops and Canada promising C$1.3 billion to combat fentanyl smuggling—the pause expires next week.

The healthcare sector is already feeling the effects of tariff uncertainty, as executives face challenges forecasting the costs of patient care supplies. Healthcare executives are urgently evaluating manufacturing locations of high-spend product categories as well as alternatives from the USA. Key SRS reports are assisting health systems by mapping their purchased products, offering crucial insights into their supply chain footprint:

“Products by Country (Tariff Risk)” – choose any country to see which items you buy are manufactured there (in the Prevent dashboard)
“Products Subject to Section 301 China Tariffs” – downloads current section 301 tariffs on healthcare item made in China (in the Prevent dashboard)
“Products Sites and Risks” – lists manufacturing location for all items you buy from the supplier (in the Prevent dashboard after you drill down on a supplier)
“Supplier Geopolitical Summary” – summarizes exposure for all countries (in the Respond dashboard)

If you have not yet tailored SRS to list manufacturing sites for the products you buy, it’s simple to do so if you have a subscription to SRS. Email support@supplyrisk.com for instructions.

For more information, see:

CNBC, Trump says tariffs on Canada and Mexico ‘will go forward’, February 24

MSN, Canada, Mexico to step up fentanyl, border talks this week to avoid Trump’s tariffs, February 23

Supply Risk Solutions, Trump Proposes 25% Tariffs on Cars, Chips, Pharma Products, February 20

Supply Risk Solutions, China Counters U.S. Tariffs with Targeted Tariffs, Export Controls, and Investigations, February 4

Reuters, Trump pauses tariffs on Mexico and Canada, but not China, February 3

Supply Risk Solutions, Trump Delays Tariffs on Mexico and Canada, February 3

Supply Risk Solutions, U.S. to Impose Tariffs on Key Trading Partners Feb. 1, February 1

Supply Risk Solutions, Trump’s Tariff Policies Spark Global Uncertainty, January 27

Supply Risk Solutions, Trump Proposes 25% Tariffs on Canada and Mexico Starting February 1, January 21

Supply Risk Solutions, Tariff Planning Requires Product Transparency, January 13

Supply Risk Solutions, U.S. Tariff Plans Bring Urgency to Knowing Product Manufacturing Locations, December 2