Latest News on Canada and Mexico Tariffs
Earlier today, when asked about the status of pending tariff discussions with Canada and Mexico, President Trump responded, “We’re on time with the tariffs, and it seems like that’s moving along very rapidly,” and that the tariffs will move forward as planned. The 25% tariff on Canadian and Mexican exports to the United States will take effect on Tuesday, March 4, pending any resolution in negotiations between President Trump and Canadian and Mexican leadership on illegal immigration and drugs.
Weekend Action – Retaliatory Trade Memo
Over the weekend, President Trump signed a memorandum to protect American companies from foreign digital service taxes (DSTs) and other policies that he views as extortion by overseas governments. The administration will consider tariffs and other measures against countries imposing DSTs, which tax U.S. firms simply for operating abroad.
The administration is prepared to consider tariffs and other responsive actions against foreign governments that impose discriminatory or disproportionate taxes, fines, penalties, or regulations on U.S. businesses. This includes measures that transfer significant funds or intellectual property from American companies to foreign governments or their favored domestic entities. Additionally, the administration will assess other foreign policies and practices that may jeopardize U.S. intellectual property rights.
President Trump's memorandum directs the USTR, in consultation with the Secretary of Commerce and the Senior Counselor to the President for Trade and Manufacturing (Peter Navarro), to establish a process enabling American businesses to report foreign tax or regulatory practices that disproportionately harm U.S. companies. This directive underscores the collaborative responsibilities of the White House, USTR, the Department of Commerce, and the Department of the Treasury in addressing foreign practices that adversely affect American businesses.
Weekend Action – National Security Presidential Memorandum
Additionally, President Trump signed a National Security Presidential Memorandum (NSPM) to promote foreign investment while safeguarding national security, particularly against threats from China. The NSPM seeks to streamline investment processes for allies while restricting Chinese investments in strategic sectors like technology, infrastructure, and agriculture. It strengthens the Committee on Foreign Investment in the United States (CFIUS), expands restrictions on foreign ownership of U.S. farmland and real estate near sensitive sites, and enhances foreign companies' oversight of U.S. stock exchanges. The administration aims to curb China’s exploitation of American capital and innovation, including restricting outbound U.S. investments in sensitive technologies such as AI, semiconductors, and biotechnology.
President Trump emphasized preventing intellectual property theft and ensuring that only investments serving American interests are allowed. The NSPM builds on previous efforts, including trade measures against China, cybersecurity protections, and AI research investments, reinforcing Trump’s commitment to economic growth and national security.
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Are you impacted by these actions? Please contact Sarah Helton, Michael Best Strategies’ Trade Practice Lead at sarah.helton@michaelbest.com for assistance.