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Trump vows March 4 tariffs for Mexico, Canada, extra 10% for China over fentanyl

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U.S. President Donald Trump on Thursday said his proposed 25% tariffs on Mexican and Canadian goods will take effect on March 4 along with an extra 10% duty on Chinese imports because deadly drugs are still pouring into the U.S. from those countries.

Trump told reporters in the Oval Office that the fresh tariffs on Chinese imports would stack on top of the 10% tariff that he levied on Feb. 4 over the fentanyl opioid crisis, resulting in a cumulative 20% tariff, Reuters reported.

Trump first announced the new duties on Chinese imports in a post, opens new tab on his Truth Social site that he would impose the additional 10% tariff, effective March 4.

In the post, Trump said drugs, namely fentanyl, were still coming into the U.S. at “very high and unacceptable levels,” with a large percentage of them the deadly opioid fentanyl.

Trump told reporters he decided to add the extra tariffs on China and stick to the Tuesday deadline for Canada and Mexico given what his administration sees as insufficient progress on curbing fentanyl flows into the country.

Asked if Mexico and Canada had made enough progress on curbing fentanyl shipments into the U.S., Trump said: “I don’t see that at all. No, not on drugs.”

“There are ongoing discussions with the Chinese, Mexico and Canada,” a White House official told Reuters. “We’ve gotten a good handle on the migration issue, but there are still concerns on the other issue of fentanyl deaths.

Sources told Reuters that Mexico will extradite to the United States drug lord Rafael Caro Quintero, who was convicted in 1985 of murdering a U.S. Drug Enforcement Administration agent but released in 2013 and returned to trafficking.

According to the Centers for Disease Control, 72,776 people died from synthetic opioids in 2023 in the U.S., chiefly from fentanyl.

FOREIGN AID FREEZE

Customs and Border Patrol agents seized 991 pounds of fentanyl at the southwest border in January 2025, down 50.5% from a year earlier, but still enough to kill many millions of Americans, the White House official said.

Trump’s move to blame Mexico and Canada for the continuing flow of fentanyl into the U.S. comes as his freeze on American foreign aid is disrupting efforts to fight the illicit trade.

Reuters reported on Monday that his aid freeze has stalled the planned expansion of a United Nations program to help the Mexican Navy better screen cargo and interdict fentanyl ingredients and other contraband, and other activities.

Also hampering U.S. drug interdiction efforts is a decision by U.S. Customs and Border Protection to delay implementation of a ban on duty-free low-value package shipments from Canada, China and Mexico until better screening can be implemented.

TARIFF TACTICS

Trump’s decision to ratchet up tariffs on Chinese goods mirrors his moves to escalate tariffs during his first-term trade wars with Beijing until serious trade negotiations took place between the world’s two largest economies.

Dean Cheng, senior adviser at the U.S. Institute of Peace, said the rising tariffs were part of a broad push by Trump to respond to Chinese challenges that also included the State Department’s removal of wording about not supporting Taiwan independence to tougher scrutiny of U.S.-listed Chinese companies.

“It’s all the pieces on the chessboard,” he said.

The Chinese embassy had no immediate comment.

Thus far, Chinese President Xi Jinping has not engaged in negotiations over fentanyl, instead applying limited 10% retaliatory duties on U.S. energy and farm equipment.

But Beijing could push back harder as Trump’s new tariffs reach 20% on U.S. imports from China, on top of existing duties of up to 25% imposed during Trump’s first term. U.S. imports from China totaled $439 billion last year, according to U.S. Census Bureau data.

Piling on more tariffs could pose risks to both the Chinese and U.S. economies. China has been struggling with a property crisis and weak domestic demand, while U.S. inflation remains sticky and interest rates are elevated.

China, in a letter to U.S. Trade Representative Jamieson Greer, called for equal dialogue and consultation.

Trump has targeted early April for implementing broader “reciprocal tariffs” to match the import duty rates of other countries and offset their other restrictions.

During a news conference on Thursday, Trump downplayed the potential inflationary impact of tariffs for Americans, arguing that his first-term tariffs on China raised hundreds of billions of dollars without negatively affecting the U.S. economy.

“I find that it’s not about inflation. It’s about fairness. And the inflation for us has not existed, and I don’t think it’s going to exist,” he said.

TARIFF, BORDER TALKS

Canadian and Mexican officials were due to meet with Trump administration counterparts in Washington on Thursday and Friday to try to forestall the tariffs, which could deal a serious blow to a highly integrated North American economy.

Mexican Economy Minister Marcelo Ebrard will meet with Greer on Thursday and Commerce Secretary Howard Lutnick on Friday.

Ebrard’s deputy, Vidal Llerenas, on Thursday said Mexico could adopt other trade measures beyond the recent tariffs it imposed on certain imports to reduce cheap shipments from China.

In Canada, Public Safety Minister David McGuinty said on Thursday that the progress Canada has made on tightening security along the border with the United States and combating drug smuggling should satisfy the Trump administration.

“The evidence is irrefutable – progress is being made,” McGuinty said in televised remarks to reporters in Washington ahead of two days of talks with U.S. officials.

“In my view, any test that was put on Canada in terms of showing progress and meeting standards for the border – I believe those have been met,” he said.

The Canada Border Services Agency said in a statement that it was launching a targeted, cross-country initiative to intercept illegal contraband arriving and leaving the country, with a focus on fentanyl and other synthetic narcotics.

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Trump says he is considering F-35 fighter jet deal with Saudis

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U.S. President Donald Trump said on Friday that he is considering agreeing to a deal to supply Saudi Arabia with F-35 stealth fighter jets, which are made by Lockheed Martin.

“They wanna buy a lot of jets,” Trump told reporters aboard Air Force One, Reuters reported.

“I’m looking at that. They’ve asked me to look at it. They want to buy a lot of ’35’ – but they want to buy actually more than that, fighter jets.”

The potential sale comes as Trump plans to host Saudi Crown Prince Mohammed bin Salman at the White House next week, when they are expected to sign economic and defense agreements.

Asked about the talks, Trump told reporters it was “more than meeting, we’re honoring” Saudi Arabia.

He repeated that he hoped Saudi would soon join the Abraham Accords, which have normalized relations between Israel and Muslim-majority nations. Riyadh has resisted such a step absent agreement on a roadmap to Palestinian statehood.

A Pentagon intelligence report has raised concerns over the potential F-35 deal, warning that China could acquire the aircraft’s technology if the sale proceeds, the New York Times reported on Thursday, citing people familiar with the assessment.

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BBC apologises to Trump over speech edit but rejects defamation claim

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The British Broadcasting Corporation sent a personal apology to U.S. President Donald Trump on Thursday but said there was no legal basis for him to sue the public broadcaster over a documentary his lawyers called defamatory.

The documentary, which aired on the BBC’s “Panorama” news programme just before the U.S. presidential election in 2024, spliced together three parts of Trump’s speech on January 6, 2021, when his supporters stormed the Capitol. The edit created the impression he had called for violence, Reuters reported.

“While the BBC sincerely regrets the manner in which the video clip was edited, we strongly disagree there is a basis for a defamation claim,” the broadcaster said in a statement.

Lawyers for the U.S. president threatened on Sunday to sue the BBC for damages of up to $1 billion unless it withdrew the documentary, apologised to the president and compensated him for “financial and reputational harm.”

By asserting that Trump’s defamation case lacks merit, the BBC effectively signaled that it believes his claim for financial damages is equally untenable. But the broadcaster did not directly address Trump’s financial demand.

In its statement, the BBC said Chair Samir Shah on Thursday “sent a personal letter to the White House making clear that he and the corporation were sorry for the edit.” Shah earlier in the week apologised to a British parliamentary oversight committee and said the edit was “an error of judgement.”

In the Thursday statement, the BBC added that it has no plans to rebroadcast the documentary on any of its platforms.

Earlier on Thursday, the BBC said it was looking into fresh allegations, published in The Telegraph newspaper, over the editing by another of its programmes, “Newsnight,” of the same speech.

The BBC has been thrown into its biggest crisis in decades after two senior executives resigned amid allegations of bias, including about the edit of Trump’s speech. The claims came to light because of a leaked report by a BBC standards official.

Founded in 1922 and funded largely by a licence fee paid by TV-watching Britons, the BBC is without a permanent leader as the government weighs how it should be funded in the future.

It is a vital instrument of Britain’s “soft power” globally, and Prime Minister Keir Starmer said he believed in a “strong and independent” BBC on Wednesday.

 

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Trump signs deal to end longest US government shutdown in history

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President Donald Trump on Wednesday signed legislation ending the longest government shutdown in U.S. history, hours after the House of Representatives voted to restart disrupted food assistance, pay hundreds of thousands of federal workers and revive a hobbled air-traffic control system.

The Republican-controlled chamber passed the package by a vote of 222-209, with Trump’s support largely keeping his party together in the face of vehement opposition from House Democrats, who are angry that a long standoff launched by their Senate colleagues failed to secure a deal to extend federal health insurance subsidies, Reuters reported.

Trump’s signature on the bill, which cleared the Senate earlier in the week, will bring federal workers idled by the 43-day shutdown back to their jobs starting as early as Thursday, although just how quickly full government services and operations will resume is unclear.

“We can never let this happen again,” Trump said in the Oval Office during a late-night signing ceremony that he used to criticize Democrats. “This is no way to run a country.”

The deal extends funding through January 30, leaving the federal government on a path to keep adding about $1.8 trillion a year to its $38 trillion in debt.

“I feel like I just lived a Seinfeld episode. We just spent 40 days and I still don’t know what the plotline was,” said Republican Representative David Schweikert of Arizona, likening Congress’ handling of the shutdown to the misadventures in a popular 1990s U.S. sitcom.

“I really thought this would be like 48 hours: people will have their piece, they’ll get a moment to have a temper tantrum, and we’ll get back to work.”

He added: “What’s happened now when rage is policy?”

The shutdown’s end offers some hope that services crucial to air travel in particular would have some time to recover with the critical Thanksgiving holiday travel wave just two weeks away. Restoration of food aid to millions of families may also make room in household budgets for spending as the Christmas shopping season moves into high gear.

It also means the restoration in coming days of the flow of data on the U.S. economy from key statistical agencies. The absence of data had left investors, policymakers and households largely in the dark about the health of the job market, the trajectory of inflation and the pace of consumer spending and economic growth overall.

Some data gaps are likely to be permanent, however, with the White House saying employment and Consumer Price Index reports covering the month of October might never be released.

By many economists’ estimates, the shutdown was shaving more than a tenth of a percentage point from gross domestic product over each of the roughly six weeks of the outage, although most of that lost output is expected to be recouped in the months ahead.

NO PROMISES ON HEALTHCARE

The vote came eight days after Democrats won several high-profile elections that many in the party thought strengthened their odds of winning an extension of health insurance subsidies, which are due to expire at the end of the year.

While the deal sets up a December vote on those subsidies in the Senate, Speaker Mike Johnson has made no such promise in the House.

Democratic Representative Mikie Sherrill, who last week was elected as New Jersey’s next governor, spoke against the funding bill in her last speech on the U.S. House floor before she resigns from Congress next week, encouraging her colleagues to stand up to Trump’s administration.

“To my colleagues: Do not let this body become a ceremonial red stamp from an administration that takes food away from children and rips away healthcare,” Sherrill said.

“To the country: Stand strong. As we say in the Navy, don’t give up the ship.”

NO CLEAR WINNER FROM SHUTDOWN

Despite the recriminations, neither party appears to have won a clear victory. A Reuters/Ipsos poll released on Wednesday found that 50% of Americans blamed Republicans for the shutdown, while 47% blamed Democrats.

The vote came on the Republican-controlled House’s first day in session since mid-September, a long recess intended to put pressure on Democrats. The chamber’s return also set the clock ticking on a vote to release all unclassified records related to the late convicted sex offender Jeffrey Epstein, something Johnson and Trump have resisted up to now.

Johnson on Wednesday swore in Democrat Adelita Grijalva, who won a September special election to fill the Arizona seat of her late father, Raul Grijalva. She provided the final signature needed for a petition to force a House vote on the issue, hours after House Democrats released a new batch of Epstein documents.

That means that, after performing its constitutionally mandated duty of keeping the government funded, the House could once again be consumed by a probe into Trump’s former friend whose life and 2019 death in prison have spawned countless conspiracy theories.

The funding package would allow eight Republican senators to seek hundreds of thousands of dollars in damages for alleged privacy violations stemming from the federal investigation of the January 6, 2021, attack on the U.S. Capitol by Trump’s supporters.

It retroactively makes it illegal in most cases to obtain a senator’s phone data without disclosure and allows those whose records were obtained to sue the Justice Department for $500,000 in damages, along with attorneys’ fees and other costs.

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