U.S. President Donald Trump is expected to announce new tariffs against Canada and Mexico starting on March 1, with a provision for both countries to request exemptions for specific imports, according to three individuals familiar with the matter as reported by Reuters.

The tariff situation was still evolving on Friday, and no decision will be final until Trump publicly declares it. The sources, speaking anonymously due to lacking authorization, indicated a planned 25% tariff rate on imports from both countries.

Furthermore, an administration official mentioned that Trump was assessing the tariff proposals on Friday, potentially allowing some exemptions, although these would be granted sparingly. This move suggests a more cautious approach by the Trump administration, providing a 28-day period before enforcement and a mechanism for exemptions.

While the imposition of tariffs could unsettle financial markets and strain U.S. relations with its key trading partners, the initiative aims to motivate Canada and Mexico to address Trump's objectives regarding illegal immigration and fentanyl trafficking.