The President of the United States, Donald Trump, has signed a decree imposing strict tariffs on imported goods from Mexico, Canada, and China. This has prompted immediate retaliatory measures from the North American neighbors amid the effectively declared trade war.
The Republican president stated on social media that the new tariffs are necessary "to protect Americans," demanding that the three countries do more to curb the production and export of illegal fentanyl, as well as urging Canada and Mexico to reduce illegal immigration to the U.S. This move, which was one of Trump's campaign promises, has thrown the global economy into turmoil and raised doubts about the feasibility of another pledge—reducing prices.
RelatedImport tariffs could lead to a significant spike in inflation, even though during the campaign the Republican candidate promised to lower prices on food, gasoline, housing, cars, and other goods.
On Saturday, Trump declared a national economic emergency and imposed tariffs of 10% on all imports from China and 25% on imports from Mexico and Canada. Meanwhile, energy products imported from Canada, including oil, natural gas, and electricity, will be taxed at a rate of 10%.
Canada and Mexico Strike Back
These measures have triggered an economic confrontation with America's two largest trading partners—Mexico and Canada—disrupting decades-old trade relations and prompting harsh retaliatory measures from both countries.
The President of Mexico immediately ordered retaliatory tariffs, while the Prime Minister of Canada announced that the country would impose corresponding 25% tariffs on imports from the U.S. totaling up to $155 billion. China has yet to respond to Trump's actions.
Canadian Prime Minister Justin Trudeau stated that Canadian tariffs on $30 billion in trade involving American alcohol and fruits will take effect on Tuesday, coinciding with the new tariffs in the U.S. He opened his address to Canadians with a message directed at American consumers.
"This will have real consequences for you, the American people", Trudeau said, warning that it would lead to increased prices for food and other goods.
Trudeau expressed the sentiment of many Canadians who feel betrayed by their neighbor and long-time ally, reminding Americans that Canadian troops fought alongside them in Afghanistan.
"The actions taken today by the White House have divided us, instead of uniting us", Trudeau said, cautioning in French that for many people this could lead to "dark times."
The President of Mexico, Claudia Sheinbaum, stated that she has instructed her Minister of Economy to take retaliatory measures, including tariffs and other actions to protect Mexico's interests.
"We categorically reject the White House's slander that the Mexican government has allied with criminal organizations, as well as the intention to interfere in our territory", Sheinbaum wrote in her post on X. "If the U.S. government and its agencies wanted to address the serious fentanyl consumption problem in their country, they could combat drug sales on the streets of their major cities, which they are not doing, and tackle the money laundering that arises from this illegal activity, causing so much harm to the population of the country."