Canada and Mexico are expected to intensify efforts this week to avoid punishing 25% tariffs on their exports to the U.S. in talks to persuade President Donald Trump's administration that their steps to increase border security and curb fentanyl trafficking are working ahead of a March 4 deadline.

Trump is turning to tariffs to retaliate against countries that impose digital services taxes on U.S. tech companies, including Canada.

Canada and Mexico are the leading exporters of steel to the US, but most of their products likely can be readily produced in the US, Bloomberg Intelligence analysis shows.

President Donald Trump is eyeing a “25% or higher” tariff across all semiconductor chips the United States imports, with rates likely to “go very substantially higher over a course of a year,” he told reporters on Tuesday.

One Canadian steel company is seeing business slow down so they are cutting hours. Conquest steel says products are getting stuck at the border.