US President Donald Trump on Saturday ordered sweeping tariffs on goods from Mexico, Canada and China, demanding they stanch the flow of fentanyl — and illegal immigrants in the case of Canada and Mexico — into the United States, kicking off a trade war that could dent global growth and reignite inflation.
Mexico and Canada, the top two US trading partners, immediately vowed retaliatory tariffs, while China said it would challenge Trump’s move at the World Trade Organisation and take other “countermeasures.”
In three executive orders, Trump imposed 25% tariffs on Mexican and most Canadian imports and 10% on goods from China, starting on Tuesday.
He vowed to keep the duties in place until what he described as a national emergency over fentanyl, a deadly opioid, and illegal immigration to the US ends. The White House provided no other parameters for determining what might satisfy Trump’s demands.
Responding to concerns raised by oil refiners and Midwestern states, Trump imposed only a 10% duty on energy products from Canada, with Mexican energy imports facing the full 25% tariff.
A White House fact sheet said the tariffs would stay in place “until the crisis alleviated,” but gave no details on what the three countries would need to do to win a reprieve.
At nearly $100 billion in 2023, imports of crude oil accounted for roughly a quarter of all US imports from Canada, according to US Census Bureau data.
Automakers would be particularly hard hit, with new steep tariffs on vehicles built in Canada and Mexico burdening a vast regional supply chain where parts can cross borders several times before final assembly.
The tariff announcement makes good Trump’s repeated threat during the 2024 presidential campaign and since taking office, defying warnings from top economists that a new trade war with the top US trade partners would erode US and global growth, while raising prices for consumers and companies.
Republicans welcomed the news, while industry groups and Democrats issued stark warnings about the impact on prices.
National Foreign Trade Council President Jake Colvin said Trump’s move threatened to raise the costs of “everything from avocados to automobiles” and urged the US, Canada and Mexico to find a quick solution to avoid escalation.
The three countries should work together to “gain a competitive advantage and facilitate American companies’ ability to export to global markets,” Colvin said in a statement.
Provincial officials and business executives in Canada also reacted with outrage, calling for forceful tariffs on imports from the US.
Roughly 90 minutes after Trump’s announcement, the American national anthem was booed in the nation’s capital Ottawa ahead of the opening face-off at the Ottawa Senators and Minnesota Wild National Hockey League game. The Senators won 6-0.
US tariff collections are set to begin at 12:01am EST (0501GMT) on Tuesday, according to Trump’s written order. But imports that were loaded onto a vessel or onto their final mode of transit before entering the US before 12:01am Saturday would be exempt from the duties.
Trump declared the national emergency under the International Emergency Economic Powers Act and the National Emergencies Act to back the tariffs, which allow the president sweeping powers to impose sanctions to address crises.
Trade lawyers said Trump was once again testing the limits of US legislation and the tariffs could face legal challenges, while Democratic lawmakers Suzan DelBene and Don Beyer decried what they called “a blatant abuse of executive power.”
White House officials said there would be no exclusions from the tariffs and if Canada, Mexico or China retaliated against American exports, Trump would likely increase the US duties.
Nova Scotia’s Premier Tim Houston said he directed that all alcohol imported from the U.S. be removed from the province’s store shelves.
The White House officials said that Canada specifically would no longer be allowed the “de minimis” US duty exemption for shipments under $800. The officials said Canada, along with Mexico, has become a conduit for shipments of fentanyl and its precursor chemicals into the US via small packages that are not often inspected by customs agents.
Canada’s Trudeau announces tariffs on US in retaliation
Canada will retaliate against President Donald Trump’s new tariffs by imposing 25% tariffs US goods from drinks to appliances, Prime Minister Justin Trudeau said on Saturday.
As relations between the long-time allies who share the world’s longest land border reach a new low, Trudeau told a news conference he was slapping tariffs on C$155 billion ($107 billion) of US goods. Those on C$30 billion will take effect on Tuesday, the same day as Trump’s tariffs, and duties on the remaining C$125 billion in 21 days, he said.
Trudeau’s announcement came just hours after Trump ordered 25% tariffs on Canadian and Mexican imports and 10% on goods from China, risking a trade war that economists say could slow global growth and reignite inflation.
Trudeau warned the coming weeks would be difficult for Canadians and that Trump’s tariffs would also hurt Americans.
Addressing Americans, he said: “They will raise costs for you, including food at the grocery store, gas at the pump. They will impede your access to an affordable supply of vital goods.”
The Canadian leader said tariffs would include American beer, wine and bourbon, as well as fruits and fruit juices, including orange juice from Trump’s home state of Florida. Canada would also target goods including clothing, sports equipment and household appliances.
Canada is considering non-tariff measures, potentially relating to critical minerals, energy procurement and other partnerships, Trudeau said.
Trudeau encouraged Canadians to buy Canadian products and vacation at home rather than in the US “We didn’t ask for this but we will not back down,” Trudeau said.
Mexico orders retaliation to Trump tariffs without detailing targets
Mexican President Claudia Sheinbaum on Saturday ordered retaliatory tariffs in response to the US decision to slap 25% tariffs on all goods coming from Mexico, marking the apparent start of a trade war between the two countries.
In a lengthy post on X, Sheinbaum said her government sought dialogue rather than confrontation with its northern neighbour, but that Mexico had been forced to respond in kind.
“I’ve instructed my economy minister to implement the plan B we’ve been working on, which includes tariff and non-tariff measures in defense of Mexico’s interests,” Sheinbaum posted, without going into detail on what US goods her government will target.
The United States is by far Mexico’s most important foreign market, while Mexico in 2023 overtook China to become the top destination for US exports.
Mexico has been preparing possible retaliatory tariffs against imports from the US, ranging from 5% to 20%, on pork, cheese, fresh produce, as well as manufactured steel and aluminum, according to sources familiar with the matter. The auto industry would initially be exempt, they said.
US exports to Mexico accounted for more than $322 billion in 2023, Census Bureau data showed, while the US imported more than $475 billion worth of Mexican products.
In her post, Sheinbaum also rejected as “slander” the allegation by the White House that drug cartels have an alliance with the Mexican government, a point used by the administration of President Donald Trump to explain why it had imposed the tariffs.
Trump said the tariffs against Mexico were due to the country’s failure to stop fentanyl getting into the United States as well as what he describes as uncontrolled migration.
Sheinbaum also touted her government’s record since she took office in October – seizing 20 million doses of deadly synthetic opioid fentanyl, in addition to detaining over 10,0000 individuals tied to drug trafficking.
China to challenge US tariffs under WTO
China will challenge US tariffs through the World Trade Organisation, the Chinese commerce ministry said on Sunday.
The imposition of tariffs by the US “seriously violates” WTO rules, the ministry said in a statement, urging the US to “engage in frank dialogue and strengthen cooperation.”
US President Donald Trump on Saturday ordered 25% tariffs on Canadian and Mexican imports and 10% on goods from China starting on Tuesday, risking a new trade war that economists said could slow global growth and reignite inflation.
