US President Donald Trump signed an executive order on Saturday imposing new tariffs on Mexico, Canada, and China, fulfilling a campaign promise that could potentially trigger a trade war, disrupt global financial markets, and destabilize the world economy.
The Trump administration justified the new tariffs as a means to curb the flow of drugs and undocumented immigrants into the US. However, these measures could have unintended consequences, including higher prices for American consumers and increased costs for US exports to Canada, China, and Mexico.
Both Canada and Mexico have already outlined plans to retaliate against the US-imposed 25% tariff on products from these neighboring countries. Additionally, Trump has implemented a 10% tax on imported goods from China.
Trump stated that the tariffs were enacted under the International Emergency Economic Powers Act (IEEPA) due to the “major threat of illegal aliens and deadly drugs, including fentanyl, killing our citizens.” The White House also cited trade statutes in the executive order concerning Canadian tariffs.
Canadian Prime Minister Justin Trudeau announced plans to impose USD 155 billion in tariffs on US goods, starting with USD 30 billion as of Tuesday. The targeted categories include beer, wine, spirits, household appliances, lumber, and plastics.
“We’re not looking to escalate but will stand up for Canada,” Trudeau said at a press conference. “We didn’t ask for this, but we will not back down.”
On X, Mexican President Claudia Sheinbaum declared she had activated “Plan B” — a set of tariff and non-tariff measures in defense of Mexico’s interests — but emphasized that Mexico did not seek confrontation.
