Washington: In a move that could spark a global trade war, US President Donald Trump has announced new tariffs on imports from Mexico, Canada, and China, citing a national emergency over the fentanyl crisis and illegal immigration. The order, which takes effect on Tuesday, imposes a 25% tariff on imports from Canada and Mexico, with Canadian energy products taxed at a lower 10% rate. Chinese goods, meanwhile, will be subjected to a 10% tariff.
The White House clarified that these tariffs will remain in place “until the crisis alleviates,” but did not specify what steps the affected countries need to take for relief. The move is expected to provoke retaliatory measures from Canada and Mexico, both of whom are key US trade partners.
Canadian officials strongly criticized the tariffs, with Ontario Premier Doug Ford calling for dollar-for-dollar retaliation. Nova Scotia Premier Tim Houston also took immediate action by directing the removal of US-imported alcohol from provincial stores. Canadian Prime Minister Justin Trudeau is expected to announce a formal response soon. Meanwhile, a senior Mexican official stated that Mexico would retaliate with countermeasures, though specific actions have yet to be disclosed.
According to Trump’s executive order, tariff collection will begin at 12:01 am EST on Tuesday. However, goods already in transit before this deadline will be exempt from the new duties. Trump invoked the International Emergency Economic Powers Act and the National Emergencies Act to justify the tariffs, using emergency powers typically reserved for sanctions. Trade analysts warn that these broad-based tariffs could face legal challenges as they extend beyond their traditional scope.
White House officials also announced that Canada will no longer benefit from the “de minimis” duty exemption for small shipments under $800. US officials argue that both Canada and Mexico have become key transit points for fentanyl and its precursor chemicals, often smuggled in small, unchecked packages.
As tensions escalate, global markets brace for potential economic fallout, with businesses warning of higher consumer prices and disrupted supply chains. If Canada, Mexico, or China retaliate, Trump has signaled his readiness to impose even harsher duties, further straining international trade relations.
