Mexico, Canada Promise Counter-Tariffs After Trump's Move

US President Donald Trump issued an executive order on Saturday imposing significant tariffs on Canada, Mexico, and China, citing the urgent need to curb the flow of fentanyl and illegal immigration into the United States.

This move has triggered a potential trade war that could stifle global economic growth and exacerbate inflation worldwide.

In immediate retaliation, Canada and Mexico, two of the United States' largest trading partners, pledged to implement counter-tariffs. Meanwhile, China has vowed to challenge Trump’s decision at the World Trade Organization (WTO) and take further "countermeasures."

Trump's actions, outlined in three executive orders, include a 25% tariff on Mexican and Canadian imports, excluding Canadian energy products, which will face a 10% tariff. Additionally, a 10% tariff will be imposed on Chinese goods, effective Tuesday.

The president stated that the tariffs would remain in place until what he described as a "national emergency" caused by fentanyl, a deadly opioid derivative, and illegal immigration. The White House has not provided additional criteria for what would constitute meeting Trump's demands.

In response to concerns raised by oil refineries and Midwest states, Trump adjusted the tariff on Canadian energy products to 10%, while Mexican energy imports will be subject to the full 25% tariff.

Canadian Prime Minister Justin Trudeau confirmed that Canada would retaliate with a 25% tariff on $155 billion worth of US goods, including beer, wine, lumber, and electronics.

Trudeau’s plan includes imposing an initial tariff of $30 billion on Tuesday, followed by a second phase of $125 billion within 21 days.

Trudeau warned American consumers that the tariffs imposed by Trump would increase food and gasoline prices, potentially forcing car assembly plants to shut down and reducing supplies of critical materials such as nickel, potash, uranium, steel, and aluminum. 

He also urged Canadians to avoid traveling to the US and to boycott American products.