U.S. Treasury Secretary Urges Mexico, Canada to Join Anti-China Tariff Push

Building a Unified North American Trade Fortress / AFP

U.S. Treasury Secretary Scott Bessent has called on Mexico and Canada to adopt the same tariff policies as the United States against Chinese imports, aiming to establish a fortified North American trade bloc. In a recent BloombergTV interview on February 28, 2025, Bessent suggested that aligning tariff rates across the three nations could prevent China from flooding the U.S. market with goods via its neighbors, a strategy he dubbed the creation of a "North American fortress" against Chinese imports. This proposal comes amid growing concerns over Chinese products bypassing U.S. tariffs by routing through Mexico and Canada, a loophole that undermines American trade protections. Bessent emphasized that if Mexico mirrors U.S. tariffs on Chinese goods and Canada follows suit, it could serve as a powerful gesture to safeguard the region’s economic interests while potentially sparing both nations from President Donald Trump’s threatened 25% tariffs on their exports to the U.S., set to take effect on March 4, 2025.

The backdrop to this tariff alignment proposal is rooted in escalating U.S.-China trade tensions, with Trump intensifying pressure on North American allies to curb Chinese economic influence. Earlier in February 2025, the U.S. imposed an additional 10% tariff on all Chinese imports, building on existing duties from the Biden administration targeting electric vehicles, semiconductors, and other strategic sectors, as well as Trump’s first-term tariffs on $300 billion worth of Chinese goods over intellectual property theft. Bloomberg reports suggest Mexico is exploring options to raise tariffs on Chinese products, particularly automobiles and auto parts, and increase purchases of U.S. goods to appease Trump and avoid his tariff threats. Canada, meanwhile, has already taken steps by imposing tariffs on Chinese electric vehicles, steel, and aluminum in the summer of 2024, aligning with U.S. policy, and is considering further duties on semiconductors, solar panels, and rare minerals announced in December 2024 but not yet implemented. These moves signal a potential North American strategy to counter China’s trade maneuvers, with Bessent’s proposal offering a framework for a cohesive regional response.

The idea of uniform tariffs across North America targeting Chinese imports raises complex questions about implementation and impact. While specifics remain unclear, analysts at Bloomberg suggest this could significantly reshape Mexico and Canada’s trade relationships with China, particularly as both countries grapple with increasing Chinese investments and imports. Mexico, for instance, has emerged as a key conduit for Chinese automakers like BYD, joining Russia and Germany as a major importer of Chinese vehicles, a trend that has drawn Trump’s ire. During his 2024 campaign, Trump criticized Mexico for using Chinese parts in cars assembled there and exported to the U.S., tying it to broader grievances over illegal immigration and fentanyl trafficking. His administration views tariff alignment as a way to block these indirect imports, protecting U.S. industries while pressuring Mexico and Canada to address border security concerns. For Mexico, imposing tariffs on Chinese auto parts and finished vehicles could be a pragmatic move to dodge Trump’s 25% tariff threat, though it risks straining its own economy, heavily reliant on affordable Chinese components.

Canada’s position adds another layer to this evolving trade dynamic. Having already levied tariffs on Chinese goods to sync with U.S. priorities, Canada could leverage its December 2024 tariff proposals as a bargaining chip in negotiations with Trump. Sources cited by Bloomberg indicate Ottawa sees these measures as a way to demonstrate solidarity with Washington while avoiding broader trade penalties. However, fully adopting U.S. tariff levels could disrupt Canada’s domestic supply chains, particularly in industries dependent on Chinese raw materials like rare minerals essential for green technology. For both nations, aligning with U.S. tariffs on Chinese imports offers a potential shield against Trump’s aggressive trade stance but introduces economic trade-offs, as higher costs could ripple through manufacturing sectors and consumer prices.

This push for a unified North American tariff front against China also carries geopolitical weight, amplifying the ongoing U.S.-China trade war. Trump has repeatedly framed tariffs as a tool to combat not just economic competition but also national security threats, linking Chinese investments in Mexico to fentanyl smuggling and broader destabilization efforts. Bessent’s "North American fortress" vision aligns with this narrative, positioning tariff coordination as a strategic bulwark against China’s global economic reach. Yet, the proposal’s success hinges on Mexico and Canada’s willingness to prioritize U.S. demands over their own trade ties with China, a decision complicated by Beijing’s potential retaliatory measures. If enacted, uniform tariffs could deter Chinese firms from using North America as a backdoor to the U.S. market, but they might also spark a broader trade conflict, with ripple effects on global supply chains already strained by years of tariffs and counter-tariffs.

For businesses and policymakers, the stakes are high as this tariff alignment idea unfolds. Mexico’s consideration of duties on Chinese automobiles and parts reflects a delicate balancing act, aiming to appease the U.S. while preserving its role as a manufacturing hub. Canada’s phased approach to tariffs suggests a cautious alignment with U.S. goals, potentially strengthening its negotiating leverage. Meanwhile, the U.S. stands to gain by closing loopholes in its trade defenses, reinforcing domestic industries like automotive and tech against Chinese competition. Bessent’s proposal, if realized, could redefine North American trade unity, but its long-term viability depends on navigating economic fallout and diplomatic tensions. As March 4, 2025, nears, the pressure mounts for Mexico and Canada to decide whether joining the U.S. in this tariff strategy fortifies their regional standing or exposes them to new risks in an increasingly fractured global trade landscape.