Emmanuel Ochayi
US President Donald Trump has announced sweeping tariffs on imports from Canada, Mexico, and China, setting the stage for a major trade battle.
“Today’s tariff announcement is necessary to hold China, Mexico, and Canada accountable for their promises to halt the flood of poisonous drugs into the United States,” the White House said in a statement on Saturday.
Join our WhatsApp ChannelThe tariffs include a 25% levy on Canadian and Mexican imports, along with an additional 10% tax on Chinese goods. Canadian energy products will face a lower 10% tariff. Trump justified the move by linking it to concerns about illegal immigration and drug trafficking.
Trump took to his Truth Social platform to defend his decision. “This was done through the International Emergency Economic Powers Act (IEEPA) because of the major threat of undocumented people and deadly drugs killing our Citizens, including fentanyl,” he posted.
Canada and Mexico Respond with Tariffs
In swift retaliation, both Canada and Mexico announced their own tariffs on US products.
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Mexican President Claudia Sheinbaum strongly rejected the US claims that her government had ties to criminal organizations. “This is slander. Problems are not resolved by imposing tariffs, but by talking,” she said.
Sheinbaum directed her economy minister to introduce countermeasures, including tariffs of 25% on US goods entering Mexico. She also called on the US to crack down on illegal gun smuggling into Mexico.
Canadian Prime Minister Justin Trudeau also announced retaliatory tariffs, matching the 25% rate imposed by the US. “We don’t want to be here, we didn’t ask for this. But we will not back down in standing up for Canadians,” Trudeau said.
Canada’s measures will affect C$155 billion ($106.6 billion) worth of US goods, including beer, wine, household appliances, and sporting goods. Trudeau also hinted at non-tariff measures concerning critical minerals and procurement but did not provide details.
China Promises “Necessary Countermeasures”
China has vowed to take action but has yet to announce specific measures.
“Trade and tariff wars have no winners,” said a spokesperson for China’s Washington embassy. “China firmly opposes these tariffs and will take necessary countermeasures to defend its legitimate rights and interests.”
The new tariff on Chinese imports comes on top of existing duties imposed by Trump during his first term and continued under President Joe Biden.
Economic Concerns Mount
Economists warn that the tariffs and retaliatory measures could have significant consequences for businesses and consumers.
TD Economics estimates the tariffs could increase the average price of US cars by $3,000 due to disruptions in supply chains. The National Homebuilders Association has also warned that housing costs may rise as a result of increased material costs.
The Canadian Chamber of Commerce expressed concern about the economic fallout. “These levies will have immediate and direct consequences on Canadian and American livelihoods. They will drastically increase the cost of everything for everyone,” the organization said.
Farmers for Free Trade, a US agricultural group, also criticized the tariffs. “With many US farmers already struggling, adding tariffs to the mix would only exacerbate the situation across much of rural America,” the group said in a statement.
Impact on US Businesses
Major US retailers are also worried about the economic impact. The US Retail Industry Leaders Association, which includes Walmart, Home Depot, and Walgreens, hopes for a resolution. “We urge the administration to reconsider these measures, which could hurt American businesses and consumers alike,” a spokesperson said.
Ashley Davis, a Republican lobbyist representing major US companies, believes Trump might adjust the tariffs if progress is made on the issues he has raised.
“You have to remember – the border and China are the two biggest issues that Americans voted him on in the elections in November. Anything he can do to claim wins on that, I think he’s going to do,” Davis told the BBC’s World Business Report.
Trade Tensions Continue
Despite the growing backlash, the White House remains firm on its stance. Officials argue that the tariffs will remain in place until Mexico cooperates on border security and Canada takes action against drug traffickers.
The US government also blamed China for playing a “central role in the fentanyl crisis,” citing the country’s exports of synthetic painkillers as a key reason for the new tariffs.
As global trade tensions escalate, economists fear further disruptions in supply chains and increased costs for businesses and consumers alike. With all three countries standing firm, the situation could mark the beginning of a new trade war.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
