Rabat – In his latest move for his new administration, US President Donald Trump has imposed sweeping tariffs on imports from Mexico, Canada, and China.
The Republican billionaire says that his far-reaching goal is to reportedly slow the flow of fentanyl and illegal immigration across the borders from Mexico and Canada.
The decision, announced on Saturday, has set the stage for a trade war that may affect global economic growth and inflation.
In a suite of executive orders, Trump slapped a 25% tariff on Mexican and most Canadian imports, while the tariffs on Chinese goods start on Tuesday at 10%.
The US president pledges to keep them in place until what he calls a “national emergency” over fentanyl and illegal immigration ends, without describing specific conditions under which they would be lifted.
Countries respond
Mexico and Canada, the top two US trading partners, immediately announced plans to retaliate, indicating that they could act jointly against the tariffs.
Canadian Prime Minister Justin Trudeau announced in response a 25% tariff on $155 billion worth of US goods, including beer, wine, lumber, and appliances.
The first $30 billion in tariffs go into effect on Tuesday, and the remaining $125 billion will kick in 21 days later.
Trudeau warns that US consumers could face higher prices and disruption in industries such as auto manufacturing and energy. He urges Canadians to reconsider traveling to the US and avoid buying American products.
Mexican President Claudia Sheinbaum also vowed countermeasures and condemned Trump’s move. In an X post, she wrote: “We categorically reject the White House’s slander against the Mexican government of having alliances with criminal organizations, as well as any intention of intervention in our territory.”
Heeding complaints from US oil refiners and Midwest states, Trump slaps on a 10% duty specifically for Canadian energy imports, although Mexican energy products are hit by the full 25% tariff.
Crude oil imports from Canada accounted for almost a quarter of total US imports from the country in 2023, according to US Census Bureau data.
China’s Commerce Ministry also condemns the move and announces plans to challenge the US at the World Trade Organization, with further counter-measures under consideration.
The tariff announcement keeps a frequent promise from Trump on the campaign trail and Republican leaders welcomed the decision. However, the controversial move bypasses several warnings from economists who argue a deepening of trade tensions with key partners slows economic growth and hikes costs for companies and general consumers.
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