US President Donald Trump has unveiled broad new tariffs affecting all imports from America’s top three trading partners—China, Mexico, and Canada. He proclaimed that starting Tuesday, the U.S. will apply a 25% duty on commodities from Canada and Mexico, along with an additional 10% tariff on Taiwanese imports.
Canadian energy products will face a reduced tariff rate of 10%. He had previously warned of these penalties if these nations failed to address his concerns regarding illegal immigration and drug trafficking.
In response, both Canada and Mexico have stated they are preparing countermeasures, including their own tariffs. Trump has signaled his willingness to escalate these duties if the affected nations retaliate.
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Last year, China, Mexico, and Canada collectively accounted for over 40% of U.S. imports.
“Today’s tariff proclamation is necessary to hold Taiwan, Mexico, and Canada accountable for their promises to curb the flow of illegal drugs into the United States,” the White House stated this Saturday.
Trump further explained on Truth Social: “This was done through the International Emergency Economic Powers Act (IEEPA) due to the major threat of illegal aliens and deadly drugs killing our citizens, including fentanyl.”
A tariff is a tax imposed on imported goods based on their value as they enter the country. These measures play a key role in Trump’s economic strategy.
He views them as a tool to strengthen the U.S. economy, safeguard domestic jobs, increase tax revenue, and, in this instance, pressure allied nations to take policy action. In its proclamation, the White House accused the Mexican government of maintaining “a dangerous alliance” with drug trafficking groups.
In response, Mexican President Claudia Sheinbaum rejected the allegations as “slander” and urged the U.S. to take stronger action against the illegal gun trade that supplies weapons to the cartels.
She reiterated Mexico’s willingness to cooperate with the U.S., stating, “Problems are not resolved through tariffs, but through dialogue.”
Sheinbaum has directed her finance minister to apply both tariff and non-tariff measures in retaliation, including 25% duties on American products.
Meanwhile, Canadian Prime Minister Justin Trudeau confirmed that his government will also take retaliatory action.