Payam Javan: Commerce Secretary Howard Lutnick confirmed on March 2 that the U.S. will reinstate tariffs on Mexico and Canada starting Tuesday, though the final levels will be determined by President Donald Trump. The decision follows a previous 30-day suspension granted to both countries to improve border security and reduce drug trafficking into the U.S. While Lutnick acknowledged some progress by Canada and Mexico, he stated that the tariffs would proceed as planned. Trump, in a Truth Social post, reaffirmed his commitment to imposing a 25% tariff on imports from both countries, as well as raising tariffs on China from 10% to 20% unless it halts the supply of fentanyl precursors to Mexico.

The tariff decision has raised concerns among energy companies and policymakers, particularly regarding its impact on oil imports from Canada. Canada supplies 60% of America’s oil imports, and industry leaders at the 2025 National Association of Regional Utility Commissions’ Winter Energy Policy Conference warned that increased costs could affect gasoline prices and utility rates. Trump, however, remains firm on boosting domestic energy production as a key strategy to combat inflation. Since taking office in January, he has taken several executive actions to expand oil and gas drilling, aligning with his “drill, baby, drill” campaign promise.