New trade war? Trump unveils sweeping US tariffs on Canada, Mexico and China

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

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President Donald Trump announced broad tariffs Saturday 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.

Canadian and Mexican exports to the United States will face a 25 percent tariff starting Tuesday, although energy resources from Canada will have a lower 10 percent levy.

Goods from China, which already face various rates of duties, will see an additional 10 percent 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 automobiles to food.

Trump invoked the International Emergency Economic Powers Act in imposing the tariffs, with the White House saying "the extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl, constitutes a national emergency." The aim is to hold all three countries "accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country," the White House added.

China's commerce ministry said in a statement it would take "corresponding countermeasures" and file a claim against Washington at the World Trade Organisation.

Mexican President Claudia Sheinbaum announced that her country would impose retaliatory tariffs.