‘Need to protect America’: Donald Trump imposes tariffs on Mexico, Canada, China due to ‘major threat of illegal aliens’

On Saturday, US President Donald Trump imposed 25% tariffs on imports from Canada and Mexico, and 10% on goods from China. The move risks triggering a new trade war, which economists warn could hamper global growth and fuel inflation.

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Trump signed three executive orders on the tariffs following a lengthy golf outing in Florida, pledging to maintain the duties until what he called a national emergency regarding the drug fentanyl and illegal immigration to the U.S. is resolved, Reuters reported.

Responding to concerns raised by oil refiners and Midwestern states, Trump imposed only a 10% duty on energy products from Canada, with Mexican energy imports facing the full 25% tariff.

At nearly $100 billion in 2023, imports of crude oil accounted for roughly a quarter of all U.S. imports from Canada, according to U.S. Census Bureau data.

Mexico says, ‘problems are not resolved by imposing tariff’

Mexican President Claudia Sheinbaum on Saturday said that she had instructed her economy minister to implement both tariff and non-tariff measures to protect Mexico’s interests, following the U.S. imposition of across-the-board tariffs on Mexican goods.

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Sheinbaum shared the news in a post on X. She wrote, “Problems are not resolved by imposing tariffs, but by talking and dialoguing, as we did in recent weeks with your State Department to address the phenomenon of migration; in our case, with respect for human rights. The graph that President Trump has been posting on social media about the decline in migration was created by my team, which has been in constant communication with his. I instruct the Secretary of Economy to implement Plan B that we have been working on, which includes tariff and non-tariff measures in defense of Mexico’s interests. Nothing by force; everything by reason and right,” she noted.

Also Read: Donald Trump’s trade tariff moves stir major backlash from Canada, Mexico, and China

Canada says, ‘we don’t want this, but…’

Prime Minister of Canada Justin Trudeau, in a post on X, said, “The United States has confirmed that it intends to impose 25% tariffs on most Canadian goods, with 10% tariffs on energy, starting February 4.

I’ve met with the Premiers and our Cabinet today, and I’ll be speaking with President Sheinbaum of Mexico shortly. We did not want this, but Canada is prepared. I’ll be addressing Canadians later this evening.”

Automakers would face significant challenges, as the new steep tariffs on vehicles from Canada and Mexico would disrupt a vast regional supply chain, where parts often cross borders multiple times before final assembly. The US measures quickly prompted Canada and Mexico to pledge retaliatory actions, though China has yet to respond.

A White House fact sheet said the tariffs would stay in place “until the crisis alleviated,” but gave no details on what the three countries would need to do to win a reprieve, Reuters reported.

Also Read: Donald Trump rules out delaying tariffs on Mexico, Canada, and China: ‘No, no. Not right now, no’

The tariff announcement follows Trump’s repeated threat during the 2024 presidential campaign and his time in office, despite warnings from leading economists that a new trade war with the U.S.’s top trade partners could undermine both U.S. and global growth, while increasing costs for consumers and businesses.

Republicans expressed support for the move, while industry groups and Democrats raised significant concerns about its potential impact on prices.

(With inputs from Reuters)