U.S. President Donald Trump is keeping new tariffs in place on Mexico, Canada and China to pressure them to block the flow of the deadly opioid fentanyl into the United States, top White House economic officials said Sunday.
"If fentanyl ends, I think these [tariffs] will come off,” Commerce Secretary Howard Lutnick told NBC’s “Meet the Press” show.
“But if fentanyl does not end, or he's uncertain about it, he will stay this way until he is comfortable,” he said. "This is black and white. You got to save American lives."
Trump last week issued a string of whip-sawing tariff decisions that plunged the three major U.S. stock market indexes and roiled relations with Canada and Mexico, which are long-time U.S. allies and its closest neighbors, as well as its two biggest trading partners.
Trump at first imposed 25% tariffs on Canadian and Mexican exports to the U.S., then exempted the duties on Mexican- and Canadian-made vehicles being transported into the U.S. and later by week’s end delayed the tariffs on almost all items for four weeks until April 2.
But Lutnick said 25% U.S. tariffs on steel and aluminum imports will take effect Wednesday as scheduled. Canada and Mexico are both top exporters of the metals to U.S. markets, with Canada accounting for most aluminum imports.
The Commerce chief also rebuffed fears that Trump's global tariffs would cause a recession in the United States.
"Absolutely not," he said. "There's going to be no recession in America."
But Lutnick acknowledged that the tariffs would lead to higher prices for U.S. consumers on foreign-made goods.
"Some products that are made foreign might be more expensive, but American products will get cheaper, and that's the point," Lutnick said. It was not clear how U.S.-produced goods would become cheaper, except in comparison to foreign-manufactured products.
Trump, in a taped interview with Fox News’ “Sunday Morning Futures” show, dodged a question about a possible recession because of his tariff boosts, but said, “There is a period of transition because what we're doing is very big.”
“There could be a little disruption,” he said about stock market losses last week. “Look, what I have to do is build a strong country. You can't really watch the stock market. If you look at China, they have a 100-year perspective. We go by quarters. And you can't go by that."
Trump has at various times said his new tariffs are aimed at raising government revenue, protecting U.S. jobs and pressuring foreign manufacturers to relocate their operations to the U.S., and to curb the flow of fentanyl.
Like Lutnick, Kevin Hassett, director of the White House National Economic Council, emphasized the fentanyl issue in an interview on ABC News’ “This Week” program. He said Trump’s tariffs targeting Canada and Mexico, along with doubling a previous 10% duty on Chinese exports to 20%, are aimed at cutting the tens thousands of fentanyl deaths that have occurred in recent years.
“We launched a drug war, not a trade war,” he said. “We hope we’ll round up the cartels” while there is a pause in the tariffs on Mexico and Canada.
“It is a big problem,” he said. “Get the drug cartels out of Canada and Mexico.”
Both Mexican President Claudia Sheinbaum and outgoing Canadian Prime Minister Justin Trudeau told Trump in phone conversations last week they have made strides in curbing the flow of fentanyl into the U.S. Sheinbaum sent 10,000 troops to Mexico’s northern border with the U.S. to try to curb the flow of drugs and undocumented migrants while Trudeau also ramped up border enforcement.
But it is unclear whether Trump will be satisfied enough with the Mexican and Canadian efforts to drop the tariff increases next month.
Even with the White House effort targeting fentanyl, Hassett said Trump’s economic concerns remain as important.
“He’s trying to make it so when we produce something, we produce it at home,” not in another country, Hassett said. “Bring the jobs home, bring the wealth home. If you want to increase the welfare of Americans, then produce the jobs here.”
