The United States is preparing for a new wave of tariffs, according to statements made by the US Commerce Secretary. Howard Lutnick, a key figure in President Donald Trump's administration, has indicated that the existing trade measures are only the beginning. The upcoming round of tariffs, set to take effect on April 2, aims to address various issues, including the opioid crisis and long-standing trade imbalances. Financial markets reacted negatively to these announcements, with Wall Street experiencing a downturn following the imposition of new tariffs on Canada, Mexico, and China. This move has also prompted retaliatory actions from these countries, signaling potential challenges in international trade relations.

Lutnick emphasized that the administration's trade policies would undergo significant changes starting in early April. He stressed that the current situation reflects the administration's determination to address what it perceceives as unfair practices by trading partners. "These countries have taken advantage of us, and this will change," Lutnick stated during an interview with CNBC. The administration believes that certain nations have not done enough to curb the flow of fentanyl into the US, which has been linked to opioid-related deaths. While there has been a decrease in overall overdose fatalities, Lutnick argued that more needs to be done to protect American lives.

According to Lutnick, the forthcoming tariffs will target external agricultural products and other goods. The initial round of tariffs, which included a 25% levy on Mexican and Canadian imports and an additional 10% on Chinese goods, caused market volatility on Monday. In response, Canada, Mexico, and China have announced plans to impose their own retaliatory tariffs. China, for instance, has already implemented tariffs of up to 15% on US agricultural products. Despite these actions, Lutnick maintains that the tariffs are necessary to combat the opioid crisis, particularly the role played by China in producing fentanyl and its precursors, as well as the involvement of Mexico and Canada in facilitating its entry into the US.

The administration's focus on the opioid crisis extends beyond trade measures. Lutnick highlighted that while progress has been made in reducing synthetic opioid-related deaths, the flow of fentanyl remains a critical issue. He pointed out that although border control efforts have improved, more comprehensive action is required to stop the illegal drug trade. Furthermore, the administration has expressed dissatisfaction with Canada's agricultural policies, particularly those affecting US dairy exports. The United States-Mexico-Canada Agreement (USMCA) did not fully address these concerns, leaving in place high tariffs on US agricultural products entering Canada.

The administration's broader review of trade deficits and policies, due to be completed by April 1, will likely lead to further tariff adjustments. Lutnick noted that the timing of these actions will be carefully considered to avoid coinciding with holidays like April Fool's Day. Overall, the administration's stance reflects a commitment to reshaping global trade dynamics, addressing both economic and public health challenges.