Feb 2 – US President Donald Trump has announced sweeping new tariffs on all goods imported from America’s three largest trading partners, China, Mexico and Canada.
Trump said the US would impose tariffs beginning on Tuesday of 25% on Canada and Mexico, and 10% on China. Canadian energy faces a lower 10% tariff.
He had threatened to impose the import taxes if the three countries did not address his concerns about illegal immigration and drug trafficking.
Both Canada and Mexico said they are preparing retaliatory tariffs of their own.
A tariff is a domestic tax levied on goods as they enter the country, proportional to the value of the import. They are a central part of Trump’s economic vision.
Trump has indicated he is ready to escalate the duties if the countries retaliate.
Together, China, Mexico and Canada accounted for more than 40% of imports into the US last year.
“Today’s tariff announcement is necessary to hold China, Mexico, and Canada accountable for their promises to halt the flood of poisonous drugs into the United States,” the White House said in a statement on X on Saturday.
Trump posted on his Truth Social platform: “This was done through the International Emergency Economic Powers Act (IEEPA) because of the major threat of illegal aliens and deadly drugs killing our Citizens, including fentanyl.”
In response, Mexican President Claudia Sheinbaum called allegations that the Mexican government had alliances with criminal organisations “slander”.
n a statement, Sheinbaum called on the US to do more to clamp down on the illegal flow of guns south to arm the cartels.
“Problems are not resolved by imposing tariffs, but by talking.” she said while instructing her economy minister to issue retaliatory tariffs of 25% on US goods.
Canadian Prime Minister Justin Trudeau said his government will impose 25% tariffs on $155bn worth of American goods – $30bn will come into force on Tuesday and another $125bn in 21 days.
“Targeted items include American beer, wine, bourbon, fruits and fruit juices, vegetables, perfumes, clothing and shoes, as well as household appliances, sporting goods and furniture. Lumber and plastics will also face levies.
Non-tariff measures being considered are related to critical minerals and procurement,” he said without offeringmore detail.
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