- Trump’s tariffs on Canada, Mexico, and China are now in effect.
- The Trump administration is imposing a 25% tariff on imports from Canada and Mexico.
- Trump has also doubled the US’s additional tariffs on China from 10% to 20%.
President Donald Trump’s new tariffs on Mexico, Canada, and China are here.
Tariffs of 25% on imports from Canada and Mexico went into effect on Tuesday.
Trump had initially announced tariffs on both countries in early February, but he reached a deal with the leaders of Mexico and Canada to delay the tariffs by a month.
Also on Tuesday, Trump doubled the tariff on goods from China from 10% to 20% in an effort to push for strengthened drug policy, particularly surrounding the flow of fentanyl into the US.
The president’s initial executive order placing tariffs on the three countries said the tariffs would remain in place “until the crisis is alleviated,” referring to border and drug policy.
Responses from China, Mexico, and Canada
Beijing retaliated swiftly against Trump’s additional tariffs, announcing that China will impose additional tariffs of 10% to 15% on some US imports starting March 10.
They include 10% tariffs on US soybeans, pork, and beef imports, as well as 15% tariffs on chicken and cotton imports, according to the Commerce Ministry.
US farm imports into China were also targeted by Beijing when Trump started the trade war in his first term.
Jonathan Wilkinson, Canada’s minister of energy and natural resources, told CNBC in a Monday interview that tariffs on Canada will cause car and energy prices to increase for US consumers.
“We will see higher gasoline prices as a function of energy, higher electricity prices from hydroelectricity from Canada, higher home heating prices associated with natural gas that comes from Canada and higher automobile prices,” Wilkinson said.
Mexico’s president, Claudia Sheinbaum, said on Monday that she would wait to see the scale of the new tariffs before announcing any retaliation.
The US imports a range of key goods from Canada, Mexico, and China, including crude oil, car parts, and electronics. Some companies, like Walmart, have said they will raise prices if tariffs go into effect.
Trump wrote on Truth Social in February that Americans will feel “some pain” with tariffs, but “it will all be worth the price that must be paid.”
The White House did not immediately respond to BI’s request for comment.
This is a developing story. Please check back for updates.
