US President Donald Trump has announced new tariffs on all goods imported from America's three largest trading partners, China, Mexico and Canada. Trump said the US will impose tariffs starting Tuesday of 25% on Canada and Mexico, as well as an additional 10% tax on China. Canadian energy faces a lower tariff of 10%.
He had threatened to impose import tariffs if the three countries did not address his concerns about illegal immigration and drug trafficking. Both Canada and Mexico said they were preparing their own retaliatory tariffs. Trump has indicated he is willing to escalate the measures if the countries retaliate.
Together, China, Mexico and Canada accounted for more than 40% of U.S. imports last year. “Today’s tariff announcement is necessary to hold China, Mexico and Canada accountable for their promises to stop the flow of toxic drugs into the United States,” the White House said in a statement on Saturday.
Trump posted on his "Social Truth" platform: "This was done through the International Emergency Economic Powers Act (IEEPA) due to the great threat of illegal aliens and deadly drugs killing our citizens, including fentanyl."
A tariff is an internal tax imposed on goods as they enter a country, proportional to the value of the import. They are a central part of Trump's economic vision. He sees them as a way to grow the American economy, protect jobs and increase tax revenue — and in this case, spur political action by allies.
The White House, in its announcement, accused the Mexican government of “an intolerable alliance” with Mexican drug trafficking organizations. In her response, Mexican President Claudia Sheinbaum called claims that the Mexican government had alliances with criminal organizations “slanderous.”
Sheinbaum called on the United States to do more to crack down on the illegal flow of weapons into the South to arm the cartels. Her country is ready to work with the US, she said. “Problems are not solved with tariffs, they are solved with talks.” She has instructed her economy minister to respond with tariff and non-tariff measures. They are expected to include retaliatory tariffs of 25% on American goods.
Canadian Prime Minister Justin Trudeau said his country would also respond. “We don’t want to be here, we didn’t ask for this,” he said at a news conference late Saturday. “But we will not back down in defense of Canadians.” His government will impose 25% tariffs on $155 billion worth of U.S. goods — $30 billion of which will take effect Tuesday and another $125 billion in 21 days.
The non-tariff measures being considered relate to critical minerals and procurement, although Trudeau did not provide further details.