by Manal Barakat, SeaNewsEditor

The US tariffs on Canada and Mexico go into effect today as hopes fade for a last-minute deal to avert the trade tension.

As of Tuesday, 4 March, the US Administration will impose a 25% tariff on goods imported from its two neighbours.

In a White House event, Trump told reporters that there was "no room" for a deal with Mexico and Canada.

In addition, as of Tuesday, the 10% tariff imposed on Chinese imports in February will be doubled to 20%.

Canada's Prime Minister Justin Trudeau announced that, in response, the country will impose 25% tariffs on American goods.

Tariffs against Canada and Mexico are expected to include imports worth USD 1.5 billion.

Impact on rail and truck transport

According to a CNBC report, US railroads are expecting an impact that hits the US-Canada-Mexico rail trade.

The Association of American Railroads (AAR) estimated that the volume of rail trade between the US and its two trade partners exceeded USD 200 billion in 2024.

Ian Jefferies, CEO of AAR, told CNBC, “Trade is a key part of that, whether it’s exports going out to our North American partners or imports coming in from our ports.”

The association cautioned that a thriving economy is necessary for its investments in transportation infrastructure.

In the meantime, the Journal of Commerce (JOC) reported a surge in truckload volumes ahead of tariff implementation.

Volumes of dry vans from Toronto to Chicago rose 57% in week 9, and the proposed tariffs are already impacting freight and pricing on both sides of the US-Canada border, says JOC.