Tariff hikes happen because of 'illegal aliens, drugs'

President Donald Trump announced broad tariffs on major US trading partners Canada, Mexico and China, claiming a "major threat" from illegal immigration and drugs - a move that sparked promises of retaliation.

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Palm Beach -

Canadian and Mexican exports to the US will face a 25% tariff starting tomorrow, although energy resources from Canada will have a lower 10% levy.

Goods from China, which already face various rates of duties, will see an additional 10% tariff.

Trump's orders also suspended exemptions allowing low-value imports from the three countries to enter the US duty-free.

The announcement threatens upheaval across supply chains, from energy to cars to food.