Pat Stevens/
Donald Trump imposed steep tariffs on Canada, Mexico, and China today, marking a bold move that threatens to spark a new era of trade wars with three of the United States’ largest trading partners.
Through an executive order, Trump applied a 25% tariff on all imports from Canada and Mexico, sparing only Canadian oil and energy products, which will face a 10% levy. Notably, Canada supplies 60% of the US’s crude imports.
Imports from China will see an additional 10% tariff on top of existing duties.
A White House official warned that the orders include a “retaliation clause” allowing further tariff hikes if affected nations counteract the move.
Trump invoked the International Emergency Economic Powers Act to bypass Congress, wielding executive authority to implement the tariffs.
The decision disrupts expectations of a cautious approach to trade policy and underscores Trump’s readiness to leverage tariffs against allies over issues like immigration and drug trafficking.
Trump accused Canada, Mexico, and China of failing to curb opioid flows into the US and defended the tariffs as necessary to address trade deficits.
“The tariffs are going to make us very rich, and very strong,” Trump declared, dismissing claims that they were a mere negotiating tool but admitting potential “disruption.”
Experts fear severe repercussions. Dimitry Anastakis, a University of Toronto business professor, likened the tariffs’ impact to the COVID-19 pandemic, predicting immediate auto trade shocks, job losses, and a potential Canadian recession. “This is taking a sledgehammer to a non-existent problem,” he said.
While Trump signalled potential EU tariffs, today’s announcement spared European imports for now, leaving global markets bracing for fallout.
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