US President Donald Trump on Saturday announced tariffs on major US trading partners Canada, Mexico and China. Trump has imposed a 25 per cent tariff on Canadian and Mexican imports and a 10 per cent on goods from China.
The move risks an economic standoff with America’s two largest trading partners, Mexico and Canada, upending decades-old trade relationships. The tariffs, if sustained, could also significantly worsen inflation in the United States. Follow LIVE updates.
The White House has said that the tariffs would remain implemented “until the crisis is alleviated”.
Why did Trump impose tariffs?
The White House has said that President Donald Trump was taking “bold action” to hold Mexico, Canada, and China accountable for their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country.
“The orders make clear that the flow of contraband drugs like fentanyl to the United States, through illicit distribution networks, has created a national emergency, including a public health crisis,” the White House said in a fact sheet on tariffs.
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The Trump administration alleged that Chinese officials have failed to take the actions necessary to stem the flow of precursor chemicals to known criminal cartels and shut down money laundering by transnational criminal organisations.
It also claimed of a growing presence of Mexican cartels operating fentanyl and nitazene synthesis labs in Canada. “A recent study recognized Canada’s heightened domestic production of fentanyl and its growing footprint within international narcotics distribution,” the White House said.
Further, it alleged that Mexican drug trafficking organisations have an “intolerable alliance” with the government of Mexico – a claim rejected by Mexican president.
“The government of Mexico has afforded safe havens for the cartels to engage in the manufacturing and transportation of dangerous narcotics, which collectively have led to the overdose deaths of hundreds of thousands of American victims,” the White House said.
It added: “This alliance endangers the national security of the United States, and we must eradicate the influence of these dangerous cartels.”
The White House said that tariffs are a powerful, proven source of leverage for protecting the national interest.
“President Trump is using the tools at hand and taking decisive action that puts Americans’ safety and our national security first,” it said.
Canada, Mexico and China retaliate
Soon after Trump’s announcement, outgoing Canadian Prime Minister Justin Trudeau announced that Canada will place 25 per cent tariffs on $155 billion in US imports in retaliation.
Mexico’s President Claudia Sheinbaum said that her country will retaliate against tariffs imposed by US President Donald Trump with tariffs. She did not provide any other details, though.
China said that it “firmly opposes” the new tariffs imposed on Beijing and vowed to take “corresponding countermeasures to safeguard our own rights and interests resolutely”.