US President Donald Trump signed an executive order on Saturday (February 1) imposing 25% tariffs on goods from Mexico, as well as 25% on goods from Canada, except for Canadian energy resources which will face 10% in tariffs. The duties on Canada will take effect on Tuesday (February 4).
The document also imposes a 10% tariff on imports from China.
According to the White House, the executive order includes a retaliation clause, meaning further measures are possible if the targeted countries respond with measures of their own.
The move hits America’s biggest trading partners. In 2023, Canada and Mexico bought US goods and services worth $808 billion (€768 billion), according to the US Department of Commerce’s Bureau of Economic Analysis.
At the same time, Canada and Mexico sent $1.01 trillion worth of goods to the US. The US trade deficit with Canada is over $40 billion, while the trade deficit with Mexico is over $162 billion.
Canada will impose tariffs on American goods in response, China too opposes move
Canada’s Prime Minister Justin Trudeau said that Canada would be imposing tariffs on American goods in response.
“Tonight I am announcing Canada will be responding to the US trade action with 25% tariffs against $155 billion worth of American goods,” Trudeau said.
On Friday (January 31), Trudeau warned of a “forceful and immediate response” if the US followed through with the threat of tariffs.
China’s response on Sunday was more vague, with Beijing saying it “firmly opposes” the new tariffs and pledging to take “corresponding countermeasures to resolutely safeguard our own rights and interests.”
The Chinese Commerce Ministry pledged to challenge the new fees at the World Trade Organisation (WTO).
Meanwhile, Mexico’s Claudia Sheinbaum said that she had ordered her economy minister to implement tariff and non-tariff measures to defend Mexico’s interest. Sheinbaum dismissed US claims of links between parts of her government and the powerful drug cartels.
“We categorically reject the White House’s slander against the Mexican government of having alliances with criminal organisations, as well as any intention of intervention in our territory,” she said.
Trump previously accused the two neighbouring countries of failing to crack down on illegal migrants crossing the border into the United States and stamp out the flow of fentanyl.
In a statement, Washington also said China is to blame for the drug entering into the US.
“President Donald Trump is taking decisive action to protect Americans from the fentanyl crisis,” the White House posted in a statement on X.
🧵President Donald Trump is taking decisive action to protect Americans from the fentanyl crisis. Fentanyl is the leading cause of death for Americans ages 18 to 45.
Today’s tariff announcement is necessary to hold China, Mexico, and Canada accountable for their promises to halt… pic.twitter.com/qY9X2wx9CT
— The White House (@WhiteHouse) February 1, 2025
“Fentanyl is the leading cause of death for Americans ages 18 to 45. Today’s tariff announcement is necessary to hold China, Mexico, and Canada accountable for their promises to halt the flood of poisonous drugs into the United States.”
Canadian Chamber of Commerce terms Trump’s decision as ‘profoundly disturbing’
The American Fuel and Petrochemical Manufacturers Association (AFPM) said in a statement that it hoped Trump’s decision to impose tariffs on Canadian and Mexican oil and energy products would not last long.
The AFPM represents companies including Chevron Corporation, ExxonMobil, Koch Industries, Marathon Petroleum and Valero Energy.
“We are hopeful a resolution can be quickly reached with our North American neighbours so that crude oil, refined products and petrochemicals are removed from the tariff schedule before consumers feel the impact,” the group said in a statement posted on social media platform X.
The Canadian Chamber of Commerce meanwhile said Trump’s decision was “profoundly disturbing” and that it will have “immediate and direct consequences on Canadian and American livelihoods.”
It added that the measures “will drastically increase the cost of everything for everyone.”
