President Donald Trump on Saturday imposed tariffs on imports from Canada, Mexico and China, the nation’s three largest trading partners, invoking emergency economic powers in a high-stakes bid to compel them to crack down on illegal immigration and drugs reaching the United States.
The president signed three executive orders establishing the measures, the first official actions of his second-term trade war, according to a White House official who briefed reporters.
They drew immediate opposition from business and labor groups, who warned of profound upheaval throughout the economy. For the typical U.S. household, the tariffs will mean a loss of about $1,200 in annual purchasing power, according to the Budget Lab at Yale University, a nonpartisan research center.
Effective Tuesday at 12:01 a.m. Eastern time, American importers will pay a new 25% tax on goods from Canada and Mexico and a 10% levy on products from China, the president said. Most products from Canada and Mexico currently face no tariffs, under a trade deal Trump signed during his first term, while many Chinese goods incur taxes of up to 25%. The new tariffs are in addition to those fees.
Energy products, including crude oil from Canada, will suffer a 10% charge.
If any of the three countries retaliate with their own tariffs on U.S. exports – as is likely – the president threatened to increase the applicable tariff rate in response.
“A Nation without borders is not a nation at all. I will not stand by and allow our sovereignty to be eroded, our laws to be trampled, our citizens to be endangered, or our borders to be disrespected anymore,” the president wrote.
U.S. companies and consumers last year purchased from the three countries about $1.3 trillion worth of merchandise, including food, electronics, cars and car parts, and clothing, according to the Census Bureau.
A U.S.-Canada tariff battle looms. These 10 things could get costlier.
Breakfast cereal
Cosmetics
Fruit juice
Alcohol
Cars
Seafood
Clothing, fabric, apparel and shoes
Amazon Prime Video and Netflix
Flowers and chocolates
Trade War Begins As Canada and Mexico Hit Back.
Canadian Prime Minister Justin Trudeau said Canada would respond with $155 billion of tariffs on U.S. goods, starting with $30 billion as of Tuesday. Categories include beer, wine, and spirits, household appliances, lumber and plastics.
“We’re not looking to escalate but will stand up for Canada,” Trudeau said at a press conference. “We didn’t ask for this but we will not back down,” he added and said he wants to work with the Trump administration.
Mexican President Claudia Sheinbaum said Saturday that she had ordered “Plan B” tariff and non-tariff measures in “defense of Mexico’s interests,” according to a post on X. “Mexico does not want confrontation,” she said on X, adding she wants to work with the U.S. to address drug trafficking and other issues.
