WASHINGTON: US President Donald Trump on Saturday ordered sweeping tariffs on goods from Mexico, Canada and China, demanding they stanch the flow of fentanyl — and illegal immigrants in the case of Canada and Mexico — into the United States, kicking off a trade war that could dent global growth and reignite inflation.
Mexico and Canada, the top two US trading partners, immediately vowed retaliatory tariffs, while China said it would challenge Trump’s move at the World Trade Organisation and take other “countermeasures”.
In three executive orders, Trump imposed 25 per cent tariffs on Mexican and most Canadian imports and 10 per cent on goods from China, starting on Tuesday.
He vowed to keep the duties in place until what he described as a national emergency over fentanyl, a deadly opioid, and illegal immigration to the US ends. The White House provided no other parameters for determining what might satisfy Trump’s demands.
Responding to concerns raised by oil refiners and Midwestern states, Trump imposed only a 10pc duty on energy products from Canada, with Mexican energy imports facing the full 25pc tariff.
The White House officials said there would be no exclusions from the tariffs. Moreover, in the case of Canada specifically, they said the “de minimis” US tariff exemption for small shipments under $800 would be canceled.
The moves follow through on a repeated threat Trump has made since shortly after winning last year’s presidential election. Trump set the Feb 1 deadline to press for strong action to halt the flow of the opiate fentanyl and precursor chemicals into the US from China via Mexico and Canada, as well as to stop illegal immigrants crossing US borders.
Canadian Prime Minister Justin Trudeau said Canada would respond with 25pc tariffs against $155 billion of US goods, including beer, wine, lumber and appliances, beginning with $30 billion taking effect on Tuesday and $125 billion 21 days later.
Trudeau warned US citizens that Trump’s tariffs would raise their grocery and gasoline costs, potentially shutting down auto assembly plants and limiting supplies of goods such as nickel, potash, uranium, steel and aluminum.
He urged his own citizens to forego travel to the US and to boycott US products.
Mexican President Claudia Sheinbaum, in a post on X, said she was instructing her economy minister to implement retaliatory tariffs but gave no details.
Canada and Mexico said they were working together to face Trump’s tariffs. China’s Commerce Ministry did not specify its planned countermeasures.
Its statement left open the door for talks between Washington and Beijing.
Published in Dawn, February 3rd, 2025
