US President Donald Trump announced sweeping tariffs on Canada, Mexico, and China on Saturday, citing concerns over illegal immigration and drug trafficking, particularly fentanyl.
The move, which has already drawn promises of retaliation, threatens to disrupt global supply chains in the energy, automobile, and food industries.
Under the new tariffs, Canadian and Mexican exports to the United States will face a 25% duty, though energy imports from Canada will be subject to a lower 10% tariff.
Meanwhile, Chinese goods, which already face various levies, will see an additional 10% tariff.
Trump invoked the International Emergency Economic Powers Act to justify the tariffs, declaring that illegal immigration and drug trafficking posed a national emergency.
The White House stated that the measures aimed to hold all three countries accountable for failing to curb these issues.
In response, China’s commerce ministry vowed to take corresponding countermeasures and would file a complaint with the World Trade Organisation.
Meanwhile, Mexican President Claudia Sheinbaum confirmed her country would implement “Plan B,” which includes tariff and non-tariff countermeasures to protect Mexico’s economic interests.
Canadian Prime Minister Justin Trudeau announced retaliatory 25% tariffs on select American goods worth C$155 billion ($106.6 billion), to be implemented in two phases—one starting Tuesday and another in three weeks.
Trudeau emphasised that while Canada was not looking to escalate tensions, it would defend its economy and jobs.
Adding a regional twist, British Columbia Premier David Eby signalled that his province’s response would specifically target US states led by members of Trump’s Republican Party.
Trump’s decision has alarmed economists and business leaders, who warn of significant risks to growth, inflation, and consumer spending.
Economists have also cautioned that the tariffs could drive up energy prices in the US, as Canada and Mexico supply nearly 60% of US crude oil imports.
The move could also have a severe impact on the automobile and agricultural industries, with manufacturers heavily dependent on cross-border supply chains.
