U.S. Tariffs on Canada and Mexico Take Effect

U.S. imposes new tariffs on Canada, Mexico, and China, triggering immediate retaliatory measures from all three nations.

Tariffs on imports from Canada and Mexico took effect Tuesday, March 4. The duties include a 25% levy on imports from Canada and Mexico,10% on Canadian energy, and an additional 10% tariff on Chinese imports on top of the existing 10% tariff implemented by President Trump last month.

In swift retaliation, Canada announced 25% tariffs on $107 billion of U.S. goods—$20.7 billion effective immediately and the remaining $86.3 billion to follow in 21 days. Prime Minister Justin Trudeau confirmed these countermeasures will remain until U.S. tariffs are lifted. Mexico plans to announce its own retaliatory measures later this week. Meanwhile, China’s response includes a 15% tariff on U.S. agricultural products, targeted actions against American businesses, and a World Trade Organization lawsuit alleging U.S. trade violations—alongside additional measures.

The tariffs are expected to disrupt North American trade, particularly in freight rail, which moved an estimated $203.1 billion in cross-border goods in 2024. Railroads facilitate key trade flows of auto parts, oil, metals, lumber, agricultural products, and chemicals. With up to 70% of rail cargo originating from outside North America, global supply chains also face potential ripple effects. Key trade flows through Texas, Illinois, and California could face delays and price increases on auto parts, oil, metals, and agricultural products.

Any health system can set up a 30-minute SRS training session on how leading health systems assess their exposure to tariffs and other risks, and the steps they take to mitigate risks proactively. Simply email SRS Support (support@supplyrisk.com) to schedule a time.

Executives face challenges estimating their exposure to increased costs from tariffs for their health system. There is no one-size-fits-all answer. The following SRS reports can be tailored to the items you buy to assess tariff exposure for your health system:

• “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 for the items you buy, it’s easy to do so with an SRS subscription.

For more information, see:

AP, US tariffs take effect and Mexico, Canada and China retaliate with their own tariffs on the US, March 4

Yahoo, Borderlands Mexico: Mapping supply chains key to surviving tariff wars, experts say, March 2

CNBC, Trump tariffs will hit over $200 billion in U.S.-Canada-Mexico cross-border rail trade, February 28

Supply Risk Solutions, U.S. Unveils New Tariff Plans, February 28

BBC, Trump says US will impose additional 10% tariff on China, February 27

CNBC, How Trump’s tariffs on Mexico and Canada will sweep across the U.S., state by state, February 25

Supply Risk Solutions, Trump Confirms Canada and Mexico Tariffs Will Take Effect on March 4, February 25

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

MedPage Today, Trump Plans to Impose Tariffs on Pharmaceuticals. Here’s What to Know., February 20

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

BBC, US coal and gas among targets of China’s retaliatory tariffs, 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

Supply Risk Solutions, Tariffs Push Manufacturers to Rethink Supply Chain Strategies, November 15

Supply Risk Solutions, Tariffs Spur Urgency to Understand Product Manufacturing Locations, November 11

Supply Risk Solutions, List the Products You Buy That Are Subject to China Import Tariffs, October 28

White & Case, United States Finalizes Section 301 Tariff Increases on Imports from China, September 17

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