Trump places tariffs on Canada, Mexico, China

National flags representing the United States, Canada, and Mexico fly in the breeze in New Orleans where leaders of the North American Free Trade Agreement met on April 21, 2008. [VOA] U.S. President Donald Trump signed an executive order Saturday that places 25% tariffs on imports from Canada and Mexico and 10% tariffs on goods from China starting Tuesday, the White House said. "Both Canada and Mexico have allowed an unprecedented invasion of illegal fentanyl that is killing American citizens, and also illegal immigrants into our country," White House press secretary Karoline Leavitt said during her briefing Friday. Trump, who is spending the weekend at his Mar-a-Lago estate in Florida, was not scheduled to speak to reporters. While Canadian goods will face a 25% tariff, Trump said he would tariff Canadian crude oil imports at 10%. Mexico's energy imports are included in its 25% tariffs. For Canada alone, Trump canceled the "de minimis" tariff exemption for shipments worth less than $800. China's 10% would be on top of various existing tariffs on its goods. Under the order, there is no process to seek an exception, but there is one to escalate the tariff rates if the countries retaliate. Mexico and Canada responded later Saturday while China denounced Trump's action Sunday but left open the possibility for talks to avoid worsening the situation. Mexican President Claudia Sheinbaum ordered retaliatory tariffs in response to the U.S. move, saying in a post on X that her government would prefer dialogue but had been forced to respond. "I've instructed my economy minister to implement the plan B we've been working on, which includes tariff and nontariff measures in defense of Mexico's interests," she wrote. She also rejected "the White House's slander that the Mexican government has alliances with criminal organizations, as well as any intention of meddling in our territory." "If the United States government and its agencies wanted to address the serious fentanyl consumption in their country, they could fight the sale of drugs on the streets of their major cities, which they don't do, and the laundering of money that this illegal activity generates that has done so much harm to its population," she wrote. Mexican President Claudia Sheinbaum ordered retaliatory tariffs in response to the U.S. move. [AFP] Canadian Prime Minister Justin Trudeau said Saturday that Canada would retaliate against the U.S. action with 25% tariffs on U.S. goods, saying that the tariffs would apply to $155 billion in U.S. goods, with those on $30 billion to go into effect Tuesday those on the other $125 billion in 21 days. He also said Canada is looking at nontariff measures, possibly relating to critical minerals, energy and other partnerships. China on Sunday denounced the U.S. tariff on China, saying it would challenge the move in at the World Trade Organizations and take "corresponding countermeasures to resolutely safeguard our own rights and interests." While its Commerce Ministry said the U.S. move "seriously violates" international trade rules, it urged Washington to "engage in frank dialogue and strengthen cooperation." 'Negative impact' predicted China, Mexico and Canada account for more than one-third of the goods and services imported into or bought from the United States. Some economists warn that the tariffs could backfire. Imports from Mexico and Canada make up around 3% of U.S. gross domestic product, while exports make up around 2.5% of U.S. GDP, Brad Setser, a senior fellow at the Council on Foreign Relations, said. A 25% tariff on Mexico and Canada amounts to a "tax hike on imports from those countries" and will "have an immediate and negative impact on the U.S. economy," he told VOA. "It's a strategy for shrinking the U.S. economy." Canada's Prime Minister Justin Trudeau said the country will hit back at US tariffs with 25 percent levies of its own on select American goods. [AFP] Trump has long threatened to impose tariffs to pressure countries to help his administration stop illegal immigration and the smuggling of chemicals used for fentanyl. He has pledged to use tariffs to boost domestic manufacturing and has praised their use as an effective economic policy. Trump believes that "tariffs are a great source of leverage," and that he will "convince Canada and Mexico to make big concessions under the threat of tariffs," Setser said. "But these measures are going to be pretty costly to the U.S." Trump acknowledged that the tariffs might cause a "short-term disruption" for consumers but said they would lead to a long-term benefit for U.S. manufacturing. "Tariffs don't cause inflation. Tariffs cause success," he added. Trump had vowed Friday to impose sweeping tariffs on semiconductors, pharmaceuticals, steel and aluminum, and oil and gas. "All forms of medicine and pharmaceuticals," Trump said. "And we'll be doing, very importantly, steel, and we'll also be doing chips and things associated with chips." Trump warned he would "absolutely" place tariffs on goods from the European Union. "They're treating us so badly," he said.

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