WASHINGTON —
The United States imposed new 25% tariffs Tuesday on exports from its two biggest trading partners, Mexico and Canada, ignoring evidence that the neighboring countries curtailed illegal migration and the flow of illicit drugs into the U.S. as President Donald Trump had demanded.
The U.S. leader first announced the tariffs a month ago and quickly put them on hold after Canadian and Mexican leaders pledged to take action. Trump told reporters Monday afternoon there was “no room left for Mexico or for Canada” and the tariffs would now go forward.
Canadian Prime Minister Justin Trudeau said his country “will not let this unjustified decision go unanswered,” and announced he would impose 25% tariffs on $155 billion worth of American goods.
Trudeau said Canada has surged personnel and equipment to the border to stop the flow of fentanyl to the United States.
“Because of this work – in partnership with the United States – fentanyl seizures from Canada have dropped 97 per cent between December 2024 and January 2025 to a near-zero low of 0.03 pounds seized by U.S. Customs and Border Protection,” he said.
Trudeau said Trump’s decision “will disrupt an incredibly successful trading relationship,” and that the tariffs will lead to Americans paying more for products such as groceries, gasoline and cars.
Mexican President Claudia Sheinbaum, whose trade-dependent economy sends 80% of its exports to the U.S., suggested her country could also impose retaliatory tariffs.
“It’s a decision that depends on the United States government, on the United States president,” Sheinbaum said ahead of Trump’s comments Monday. “So whatever his decision is, we will make our decisions, and there is a plan. There is unity in Mexico.”
After Trump announced the new duties on Mexico and Canada last month, Sheinbaum sent 10,000 troops to Mexico’s northern border with the U.S. to curb the flow of narcotics.
Trump and other administration officials this week said apprehensions of people illegally crossing the U.S.-Mexico border dropped to a record low in February.
The fallout from the tariff hikes could roil the economies of all three countries, with possibly less U.S. demand for Mexican and Canadian goods that would cost more and higher prices for U.S. consumers and businesses for the products that actually are transported into the United States.
The United States also proceeded Tuesday with a new 10% tariff on Chinese goods, doubling 10% duties Trump imposed on Feb. 4. Trump has blamed China as the source of fentanyl trafficking into the U.S. through Mexico and Canada.
China’s commerce ministry said in a statement Tuesday that it firmly opposes the U.S. move and that China will take countermeasures to protect its interests. China also said the tariffs violate World Trade Organization rules and undermine U.S.-China economic cooperation.
The Chinese finance ministry said, starting March 10, China will impose a 15% tariff on imports of U.S. chicken, wheat, corn and cotton. A 10% tariff will apply to U.S. sorghum, soybeans, pork, beef, fruits, vegetables and dairy, the ministry said in a statement.
Economists say the tariffs Trump is imposing are likely to boost retail prices for consumers and the cost of materials for businesses. Mexico, Canada and China, in that order, are the three biggest national trading partners with the U.S., although collectively, the 27-nation European Union is larger than all three individually.
Trump, at the first Cabinet meeting of his new presidential term last week, said he would “very soon” announce a 25% tariff on EU exports to the U.S.
With Trump signaling the new tariff on goods sent to the U.S., the EU vowed to respond “firmly and immediately” to “unjustified” trade barriers and suggested it would impose its own tariffs on U.S. imports, if Trump proceeded with his.
Trump said reciprocal tariffs on nations that levy taxes on U.S. exports are still set to take effect on April 2. He has also hinted at putting tariffs on automobile imports, lumber, pharmaceutical products and other goods.
Many economists have repeatedly warned that tariffs could lead to higher prices, boosting troublesome inflation in the U.S. Trump has acknowledged there could be short-term pain for Americans but has contended that tariffs would ultimately be beneficial to the U.S. economy, the world’s largest.
Trump says the tariffs he is imposing would be an incentive for foreign companies to do more manufacturing in the United States to avoid the tariffs on overseas shipments of their products to the U.S.
Some information for this story was provided by Agence France-Presse and Reuters.
Source: voanews.com
