In a move that could spark a global trade war, U.S. President Donald Trump on Saturday ordered new tariffs on imports from Mexico, Canada, and China, citing concerns over fentanyl trafficking and illegal immigration from its North American neighbors.
The executive orders, signed by Trump, impose a 25% tariff on Mexican and most Canadian imports and a 10% tariff on Chinese goods, effective from Tuesday.
Trump declared that the tariffs would remain until his administration deemed the national emergency over fentanyl and illegal immigration resolved.
The decision prompted swift backlash from Mexico and Canada, the United States’ top trading partners, as well as China.
Canada’s Response: Prime Minister Justin Trudeau vowed retaliatory tariffs on $155 billion worth of U.S. goods, including beer, wine, lumber, and appliances. The first wave, worth $30 billion, takes effect Tuesday, with the rest to follow in three weeks.
Mexico’s Response: President Claudia Sheinbaum also announced retaliatory measures but did not provide details.
China’s Reaction: China’s Commerce Ministry condemned the move and stated it would challenge the tariffs at the World Trade Organization while leaving the door open for diplomatic talks.
The tariffs could lead to higher prices for U.S. consumers, especially on groceries, gasoline, and auto parts.
Trudeau warned that American auto plants could face shutdowns and supplies of essential goods like nickel, uranium, potash, steel, and aluminum could be affected.
In a further escalation, Trudeau urged Canadians to boycott U.S. products and avoid traveling to the United States.
With trade tensions rising, economists fear the tariffs could slow global economic growth and fuel inflation, a scenario that could have major political and economic repercussions ahead of the 2028 U.S. presidential election.
This latest development marks one of the most aggressive trade policies of Trump’s presidency, with the world now waiting to see whether negotiations or further retaliatory actions will follow.