President Donald Trump has officially launched a trade war with Canada, Mexico, and China, imposing sweeping tariffs that have sparked immediate retaliatory measures from America’s closest trading partners.
Trump’s Tariffs Take Effect
On Saturday, Trump signed an executive order imposing 25% tariffs on imports from Canada and Mexico, with a lower 10% tariff on Canadian energy products. Goods from China will also face a 10% tariff, starting Tuesday.
Trump defended the move as a strategy to curb illegal immigration and the flow of fentanyl into the U.S., calling himself “Tariff Man” and vowing to take further action if necessary.
Canada and Mexico Hit Back
Both Canada and Mexico swiftly condemned the tariffs and announced their own retaliatory measures.
- Canadian Prime Minister Justin Trudeau announced 25% tariffs on $155 billion worth of U.S. goods, targeting key American exports such as alcohol, lumber, and appliances. The first $30 billion in countermeasures will take effect Tuesday, with the remaining $125 billion rolling out in three weeks.
- Mexican President Claudia Sheinbaum rejected the White House’s justification for the tariffs and stated that Mexico would implement “Plan B”, which includes both tariff and non-tariff measures to protect its economy. She called Trump’s claims of cartel-government alliances “slander” and said Mexico would defend its interests through trade retaliation.
China Promises a Strong Response
China also condemned the tariffs, stating that it would challenge Trump’s move at the World Trade Organization (WTO) and take “necessary countermeasures.” While Beijing has not yet detailed its response, analysts expect targeted restrictions on U.S. agricultural imports and high-tech goods.
Economic Fallout and Escalation Threats
Economists warn that Trump’s tariffs could have severe repercussions, raising prices on goods ranging from cars to groceries for American consumers. The National Foreign Trade Council cautioned that tariffs will increase costs on “everything from avocados to automobiles,” urging a swift resolution before tensions escalate further.
Trump has already signaled that if Canada, Mexico, or China respond with further trade measures, he may expand the tariffs or increase their rates, prolonging the economic conflict.
As tensions rise, global markets remain on edge, bracing for what could become a prolonged and costly trade war.