Live Updates: U.S. Tariffs on China—Bessent Pressures Canada & Mexico to Follow Suit

Former White House communications director Anthony Scaramucci has warned that broad tariffs imposed by President Trump could lead to a U.S. recession.

"I don’t think this blanket approach is the right move, and honestly, it could push us into a recession," Scaramucci said at a recent investor conference.

He explained that tariffs function as a tax, mainly affecting consumers. "It's like a sales tax that hits lower-income people the hardest because it takes up more of their disposable income," he said.

As the March 12 deadline approaches for President Trump's 25% tariffs on steel and aluminum imports, many industries are evaluating potential cost increases. However, Coca-Cola CEO James Quincey reassured investors during the company’s Q4 earnings call that rising aluminum prices would not significantly impact beverage costs. He noted that Coca-Cola has alternative packaging solutions to mitigate any price surges.

Industry analysts suggest that while aluminum tariffs could marginally affect production costs, beverage companies are unlikely to pass those costs directly to consumers. This means your favorite canned drinks, including Coca-Cola products, are expected to maintain stable pricing despite the new trade policies.

Commerce Secretary Howard Lutnick confirmed that tariffs on Mexico and Canada will go into effect on March 4 but hinted that the final rate may not reach the full 25% initially proposed by President Donald Trump. During an interview on Fox News' Sunday Morning Futures, Lutnick described the situation as evolving, leaving room for potential changes.

"There will be tariffs on Tuesday for Mexico and Canada," Lutnick said. "The exact details are still being worked out, and the final decision rests with the president and his team."

While the tariffs are certain to be implemented, uncertainty over the final rates has businesses and trade partners closely watching for updates.

President Donald Trump has ordered the U.S. Commerce Department to investigate whether lumber imports threaten national security—a move widely seen as a potential justification for imposing new tariffs. This latest step in the administration’s aggressive trade policy could have significant consequences, particularly for Canada, which is a major supplier of softwood lumber to the U.S.

The timeline for the investigation remains uncertain, but officials indicate that it will be expedited. What’s also unclear is whether any tariffs resulting from the probe would be in addition to the 25% "reciprocal" tariffs the Trump administration has already planned for Canada and Mexico.

Lumber has long been a contentious issue in U.S.-Canada trade relations, with previous disputes leading to costly duties and trade disruptions. If new tariffs are imposed, they could drive up costs for U.S. homebuilders and consumers, further straining an industry already facing supply chain challenges and rising material prices.

With President Trump preparing to introduce a 25% tariff on imported steel and aluminum, the effects are already being felt. While recent trade discussions have centered around tariffs on Canada, Mexico, and China, these broad new duties on steel imports are poised to reshape the U.S. market.

Even before the tariffs take effect, buyers are noticing a surge in the cost of domestically produced steel, hinting at widespread price increases that could impact industries dependent on these materials.

U.S. Treasury Secretary Scott Bessent announced Friday that Mexico is considering matching U.S. tariffs on Chinese imports—an idea he finds "very interesting" and hopes Canada will support as well.

With a March 4 deadline approaching, Mexican officials have been in trade talks with the U.S. as new tariffs on Mexican and Canadian imports are set to take effect, along with an additional 10% duty on Chinese goods.

Bessent suggested that if Canada followed suit, it could help strengthen North America's trade position against China, calling it a step toward creating a more balanced and competitive economic region.