President Donald Trump said the United States may impose 25% tariffs on Canada and Mexico beginning February 1. Howard Lutnick, who is a nominee to lead the Commerce Department, said Mexico and Canada could avoid new tariffs if they clamp down on border security related to migration and fentanyl.

Reuter’s Diego Oré reported that Mexico President Claudia Sheinbaum is prepared to impose retaliatory tariffs on the United States if the U.S. does implement the tariffs. The retaliatory tariffs would most likely be on pork products, cheese, apples, grapes, potatoes, cranberries, Bourbon whiskey, manufactured steel and aluminum.

In addition, across-the-board tariffs are being considered. Reuter’s David Shepardson reported that Lutnick repeatedly called for a restoration of ‘reciprocity’ on trade with other countries during confirmation hearings. This would be in line with Trump’s vow to erect a universal tariff of 10% on all U.S. imports.

Read more on the proposed tariffs here.