Trump imposes tariffs on Mexico, Canada, and China

WASHINGTON,— U.S. President Donald Trump on Saturday imposed sweeping tariffs on imports from Mexico, Canada, and China, aiming to curb fentanyl smuggling and, in the case of Mexico and Canada, illegal immigration. The move threatens global economic growth and could drive inflation higher.

In three executive orders, Trump announced 25% tariffs on most Mexican and Canadian imports and 10% on goods from China, effective Tuesday. He said the tariffs would remain until the national emergency over fentanyl and illegal immigration is resolved, but the White House did not outline specific criteria for lifting them.

Mexico and Canada, the United States’ top trading partners, immediately vowed to retaliate. China stated it would challenge the tariffs at the World Trade Organization and take additional countermeasures.

Canadian Prime Minister Justin Trudeau announced 25% tariffs on $155 billion worth of U.S. goods, including beer, wine, lumber, and appliances. The first $30 billion in tariffs will take effect Tuesday, with the remainder following in three weeks. He warned that Trump’s tariffs would raise costs for U.S. consumers and disrupt supply chains, urging Canadians to avoid American products and travel.

Mexican President Claudia Sheinbaum confirmed that her administration would impose countermeasures, though she did not provide details.

China’s Commerce Ministry criticized Trump’s decision, urging the U.S. to address its fentanyl crisis “objectively and rationally.” It left the door open for further negotiations.

Trump set a lower, 10% tariff on Canadian energy imports in response to concerns from oil refiners and Midwestern states, while Mexican energy imports will face the full 25% duty.

Automakers will be hit particularly hard, as vehicles and parts cross North American borders multiple times before final assembly. The tariffs could upend this supply chain, affecting production costs and jobs.

Despite warnings from economists about potential economic harm, Trump has long signaled his intention to implement these measures, fulfilling campaign promises. Republicans have largely supported the move, while Democrats and industry groups have warned of rising consumer prices.

National Foreign Trade Council President Jake Colvin criticized the tariffs, saying they would increase the cost of “everything from avocados to automobiles.” He urged all three countries to seek a resolution to prevent further escalation.

The tariffs are set to take effect at 12:01 a.m. EST on Tuesday, according to Trump’s order. Imports already in transit before that time will be exempt.

Trump invoked the International Emergency Economic Powers Act and the National Emergencies Act to justify the tariffs. Legal experts suggest they could face legal challenges. Democratic lawmakers Suzan DelBene and Don Beyer called the move “a blatant abuse of executive power.”

In Canada, outrage was evident, with Nova Scotia Premier Tim Houston ordering all U.S.-imported alcohol removed from store shelves. At a National Hockey League game in Ottawa, the U.S. national anthem was booed following the tariff announcement.

Market volatility followed, with the Mexican peso and Canadian dollar dropping, U.S. stock prices falling, and Treasury bond yields rising.

Trump warned of additional tariffs on steel, aluminum, semiconductor chips, and pharmaceuticals. White House officials stated that if Canada, Mexico, or China retaliated, the administration would consider raising tariffs further.

Less than two weeks into his second term, Trump’s actions are reshaping U.S. trade policy, straining relations with key allies, and setting the stage for a prolonged economic battle.

(With files from Reuters)