WASHINGTON: United States President Donald Trump on Saturday signed an order to impose stiff tariffs on imports from Mexico, Canada and China, drawing swift retaliation and an undeniable sense of betrayal from the country’s North American neighbours as a trade war erupted among the longtime allies.
The President posted on social media that the tariffs were necessary “to protect Americans,” pressing the three nations to do more to curb the manufacture and export of illicit fentanyl and for Canada and Mexico to reduce illegal immigration into the US.
Trump declared an economic emergency in order to place duties of 10% on all imports from China and 25% on imports from Mexico and Canada. Energy imported from Canada, including oil, natural gas and electricity, would be taxed at a 10% rate. Trump’s order includes a mechanism to escalate the rates charged by the US against retaliation by the other countries, raising the spectre of an even more severe economic disruption.
“The actions taken today by the White House split us apart instead of bringing us together,” Canadian Prime Minister Justin Trudeau said in a sombre tone as he announced that his country would put matching 25% tariffs on up to $155 billion in US imports, including alcohol and fruit.
Mexico’s president also ordered retaliatory tariffs. China did not immediately respond to Trump’s action.
“We categorically reject the White House’s slander that the Mexican government has alliances with criminal organisations,” Mexican President Claudia Sheinbaum wrote in a post on X while saying she had instructed her economy secretary to implement a response that includes retaliatory tariffs and other measures in defense of Mexico’s interests.
The tariffs will go into effect on Tuesday, setting up a showdown in North America that could potentially sabotage economic growth. Democrats were quick to warn that any inflation going forward was the result of Trump’s actions.