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US President Donald Trump on Saturday signed executive orders placing tariffs on goods from Mexico, Canada, and China, paving the way for a global trade war.
Imports from Canada and Mexico will face 25% tariffs — except Canadian energy, which will be taxed at 10% — while Chinese imports face 10% duties.
Trump had previously threatened to impose the sweeping tariffs, arguing that Canada and Mexico needed to do more to stop migration and drug trafficking into the US, and that the US suffers from trade imbalances with its most important economic partners.
The orders reportedly contain a retaliatory clause stating that if any country retaliates against the tariffs, the US will take further action. A statement from the White House said the duties will remain in place “until the crisis is alleviated,” referring to irregular and drugs.
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Washington’s allies across the Americas have warned Trump against imposing tariffs. Ottawa had said it will rapidly retaliate, while some analysts said the fallout from trade penalties on Mexico may undermine Trump’s efforts to curb migration at the southern border. Brazil, meanwhile, said it would impose tariffs on US goods if Trump followed through on plans for across-the-board surcharges on imports.
“There could be some temporary, short-term disruption, and people will understand that,” Trump said Friday when pressed by reporters on the cost of tariffs being passed on to importers, and, by extension, consumers. “But the tariffs are going to make us very rich and very strong — and we’re going to treat other countries very fairly.”