CHICAGO, March 4, 2025 — Despite dire warnings from both sides of U.S. borders, President Trump has levied 25% tariffs on foods, beverages, equipment and most other imports from Mexico and Canada, effective last night at 12:01 a.m.
Duties on imports from China have been in effect since Feb. 4. Trump doubled the levy yesterday to 20%, saying the increase was retribution for China’s weak efforts to curb the inflow of fentanyl into the United States.
The imposition of steep tariffs on foods and beverages from Mexico will cost the U.S. restaurant industry $12 billion, according to the National Restaurant Association. It warned that the higher price of goods ranging from beer to flour could cut profit margins to as little as 2.2%.
The group implored Trump in a letter last week from association CEO Michelle Korsmo to exempt foods and beverages from the tariffs, which the president has championed as a way of protecting American businesses and fostering more domestic manufacturing.
Mexico is a major source of ingredients for the trade, and virtually the only source of such goods as tequila and mezcal.
Canada is a leading source of beef, flour and fresh vegetables.
Letters similar to Korsmo’s were sent to the Executive Office by such additional groups as the National Association of Home Builders.
Trump’s announcement during yesterday’s business hours triggered a 650-point freefall in the Dow Jones Industrial Average.
As the midnight deadline approached, U.S. businesses of all stripes implored Trump not to proceed with the tariffs on Mexican and Canadian imports, which had been on hold since Feb. 4, the result of concessions from America’s two neighboring nations.
Minutes after the tariffs went into effect, Mexico and China countered by imposing duties on imports from the U.S., including chicken and wheat.
Economists have warned that the tariffs will drive up the cost of goods significantly, rekindling high levels of inflation. Korsmo said in her letter that menu prices are already too high to sustain another price increase to cover the spike in costs.
Check back for updates as the situation unfolds.