Trump slaps tariffs on Mexico, Canada, China

President Donald Trump has imposed a 25% tariff on all US imports from Mexico and Canada, and 10% on Chinese imports, citing the failure of the first two countries to stem the flow of illegal immigrants and the complicity of all three countries in the smuggling of fentanyl into the US.

- Prashant Jha

In what analysts see as the opening of a broader trade war, the tariffs take effect on Tuesday, February 4. Canadian energy products face a reduced 10% tariff.

Following Trump's executive orders on Saturday evening, Mexico, Canada, and China immediately announced retaliatory tariffs. Trump threatened further increases in response to these countermeasures.

US economists warned of inflation risks, particularly given North America's integrated economy under part of a free trade pact between US, Canada and Mexico, that was signed, ironically, under Trump in his first term. Industry associations across sectors strongly opposed the decision.

While the China tariffs were short of Trump's campaign threat of 60%, their comprehensive nature-covering all imports rather than specific sectors-is striking. Trump's use of tariffs to address noneconomic issues signals his willingness to leverage trade policy across domains.

After signing the executive orders, Trump posted on Truth Social: "Today, I have implemented a 25% Tariff on Imports from Mexico and Canada (10% on Canadian Energy), and a 10% additional Tariff on China. This was done through the International Emergency Economic Powers Act (IEEPA) because of the major threat of illegal aliens and deadly drugs killing our Citizens, including fentanyl.

We need to protect Americans, and it is my duty as President to ensure the safety of all. I made a promise on my Campaign to stop the flood of illegal aliens and drugs from pouring across our Borders, and Americans overwhelmingly voted in favor of it."

The Mexico tariffs In the Mexico order-affecting America's largest trading partner-Trump cited a "sustained influx of illegal aliens and illicit opioids" as threatening American society.