Trump Says Canada, Mexico Tariffs to Take Effect, Adds New China Duty

President Donald Trump said 25% tariffs on Canada and Mexico are on track to go into place on March 4, and said he would impose an additional 10% tax on Chinese imports.

The president paused the sweeping duties on the US’s largest trading partners on Feb. 3 for one month after Canadian and Mexican leaders announced new border security measures. But the president had recently sowed confusion about whether they would take effect once the grace period ended.

Trump said Thursday in a social media post that drugs from the country’s North American neighbors are still entering “at very high and unacceptable levels.”

“We cannot allow this scourge to continue to harm the USA, and therefore, until it stops, or is seriously limited, the proposed TARIFFS scheduled to go into effect on MARCH FOURTH will, indeed, go into effect, as scheduled,” the president wrote. “China will likewise be charged an additional 10% Tariff on that date.”

Read more: Trump Deepens Murkiness Around Global Tariffs Timing, Scope

The new tariffs on China come on top of a previous 10% duty he allowed to take effect earlier this month, when he delayed the tariffs on Canada and Mexico. The 25% tariffs apply to all Canadian and Mexican imports, except for energy products from Canada, which will be taxed at 10%.

Trump’s latest tariff threat rattled financial markets. The Bloomberg Dollar Index rose to a session high, with the loonie, peso and offshore yuan all falling. S&P 500 futures pared gains and oil hit the day’s highs.

Trump at a cabinet meeting on Wednesday appeared to conflate the North American tariffs which are tied to drug trafficking and illegal migration, with separate reciprocal duties his administration plans on nations worldwide.

“The April Second Reciprocal Tariff date will remain in full force and effect,” the president wrote on Thursday.

Top photo: A Canadian National Railway Co. train car at the MacMillan Yard in Toronto, Ontario. Photographer: Cole Burston/Bloomberg.