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Trump officials say the tariff levels are up to negotiation
President Donald Trump's tariffs on Mexico and Canada are set to go into effect at midnight on Tuesday, setting up a second economic showdown with America's neighbors.
Trump's administration delayed imposing 25% tariffs on Canadian and Mexican goods last month following last-minute concessions from both countries. Officials from both countries have carried out negotiations with the Trump administration in recent weeks, but no agreement to reduce the incoming tariffs has been announced.
Peter Navarro, the White House senior counselor on trade and manufacturing, defended Trump's approach to tariffs on Monday. The White House has pointed to fentanyl and other drug trafficking across both the northern and southern borders to justify the tariffs.
"If you think about the problem, it starts in communist China with the precursor chemicals. It comes into Mexico and they make the fentanyl. But they also have these pill presses. So they do the counterfeits. And they're using Canada as a transit hub and secondary point to manufacture as well. So this is a Canada-Mexico-China thing," Navarro told CNBC.
Continued below.
Trump tariffs on Mexico, Canada, China are hours away from hitting at midnight
President Trump's administration is set to hit Mexico, Canada and China with new tariffs on Tuesday, but the levels remain unclear.
