Canada, Mexico, and China announced retaliatory tariffs after President Donald Trump imposed sweeping new duties on imported goods from the three countries. The executive order, signed Saturday, enacts a 25% tariff on all imports from Canada and Mexico, with a 10% tariff on Canadian energy products and a 10% tariff on Chinese goods.
Canadian Prime Minister Justin Trudeau responded by imposing a 25% tariff on $155 billion in American goods, with the first $30 billion taking effect Tuesday, when the U.S. begins collecting its tariffs. "Like the American tariffs, our response will also be far-reaching," Trudeau said, listing U.S. beer, wine, bourbon, fruits, vegetables, clothing, furniture, and household appliances among the targeted goods.
Trudeau directly addressed Americans, warning that the tariffs "will have real consequences for you, the American people" and urging Canadians to boycott American products and vacation domestically instead of traveling to the U.S.
Mexico Orders Retaliatory Tariffs but Keeps Auto Industry Exempt
Mexican President Claudia Sheinbaum followed suit, instructing her economy minister to implement a "Plan B" of retaliatory tariffs. Though she did not specify which U.S. products would be targeted, sources familiar with the plan told Reuters that Mexico is considering 5% to 20% duties on U.S. pork, cheese, fresh produce, and manufactured metals, while automobiles will remain exempt for now.
Sheinbaum also condemned Trump's justification for the tariffs, rejecting U.S. allegations that the Mexican government has ties to drug cartels. "We categorically reject the White House's slander," she posted on X. She added, "Coordination, yes; subordination, no."
China to File WTO Complaint, Vows Additional Countermeasures
The Chinese Ministry of Commerce denounced the new U.S. tariffs and announced plans to file a lawsuit with the World Trade Organization (WTO). The ministry also signaled that Beijing will implement "necessary countermeasures" to defend its trade interests.
"China calls on the U.S. to correct its mistakes," the ministry stated, adding that it seeks "mutual understanding, candid dialogue, and strengthened cooperation" instead of escalating trade disputes.
Trump Justifies Tariffs as National Emergency Response
Trump framed the tariffs as a response to illegal immigration and fentanyl trafficking, declaring a "national emergency" under the International Emergency Economic Powers Act. In a Truth Social post, he said, "The major threat of illegal aliens and deadly drugs killing our Citizens, including fentanyl, requires strong action."
However, the majority of fentanyl seizures by U.S. Customs and Border Protection occur at the southern border, not the northern border, according to federal agency data.
Business and Political Leaders Warn of Rising Prices
Industry groups and lawmakers warned of economic consequences, predicting higher prices for food, automobiles, and consumer goods.
National Foreign Trade Council President Jake Colvin said the tariffs would raise the costs of "everything from avocados to automobiles" and urged the U.S., Canada, and Mexico to reach a solution to avoid further escalation.
Senate Democratic Leader Chuck Schumer (D-NY) criticized Trump's move, writing on X, "You're worried about grocery prices? Don's raising prices with his tariffs. You're worried about car prices? Wait till Trump's Canada tariffs raise your car prices."
Even some Republicans expressed concern over the potential fallout. The U.S. auto industry relies heavily on Mexican and Canadian suppliers, and companies fear the new tariffs could drive up costs for manufacturing and lead to job losses.
U.S.-Canada-Mexico Trade War Looms as Impact Spreads
Trade analysts warn that the retaliatory measures could trigger a full-scale trade war similar to Trump's 2018-2019 tariffs on China, which resulted in billions in lost revenue for U.S. businesses and led to retaliatory tariffs on American agricultural exports.
The White House has not commented on the retaliatory tariffs announced by Canada, Mexico, and China. Meanwhile, tariff collections in the U.S. will begin Tuesday at 12:01 AM, affecting goods already in transit.