Trump Imposes Sweeping Tariffs on Mexico, Canada, and China, Sparking Economic Concerns

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PALM BEACH, Fla. — President Donald Trump signed an executive order on Saturday imposing significant tariffs on imports from Mexico, Canada, and China, fulfilling a key campaign promise while risking higher inflation and economic disruption across North America.

The tariffs, set to take effect on Tuesday, include a 10% duty on all imports from China and a 25% duty on imports from Mexico and Canada, the United States’ largest trading partners. However, Canadian energy products such as oil, natural gas, and electricity will face a lower rate of 10%, reflecting the administration’s concern about potential spikes in gasoline and utility prices.

A senior administration official, speaking on condition of anonymity, emphasized that the tariffs aim to address critical issues such as the fentanyl crisis and illegal immigration. The order includes no mechanism for exemptions, potentially impacting industries like homebuilding, agriculture, and automotive manufacturing that rely heavily on imported materials.

Economic and Political Risks
The move marks a significant escalation in Trump’s trade policy, with the potential to disrupt supply chains, increase consumer prices, and strain relationships with key allies. Economists have warned that sustained tariffs could exacerbate inflation, a sensitive issue for Trump, who campaigned on tackling the price spikes that occurred under his predecessor, Joe Biden.

The White House also included a provision to escalate tariff rates if Mexico, Canada, or China retaliate, as they have threatened to do. Both Canada and Mexico have already outlined plans to impose their own tariffs in response, setting the stage for a potential trade war.

Tariffs as a Policy Tool
Trump’s decision underscores his long-standing belief in tariffs as a means of protecting U.S. industries and addressing national security concerns. The administration framed the tariffs as a response to the spread of fentanyl and illegal immigration, though the order lacks specific benchmarks for lifting the duties.

“The best measure of success would be fewer Americans dying from fentanyl addiction,” the senior official said.

The tariffs also target Canadian imports valued at less than $800, which currently enter the U.S. duty-free. This change could further complicate cross-border trade and consumer spending.

Global and Domestic Implications
The announcement has drawn sharp criticism from economists and lawmakers, who warn that the tariffs could destabilize the global economy and harm U.S. businesses and consumers. Brad Setser, a senior fellow at the Council on Foreign Relations, described the move as a “massive shock” that could have far-reaching consequences.

“If sustained, these tariffs would be a much bigger move in one weekend than all the trade actions Trump took in his first term,” Setser noted on social media.

The tariffs could also test the influence of corporate America, particularly tech giants like Apple, whose products, including iPhones, may become more expensive for U.S. consumers. Apple CEO Tim Cook, who attended Trump’s inauguration last month, has yet to comment on the potential impact.

International Reactions
Canadian Prime Minister Justin Trudeau warned that the tariffs could lead to “difficult times” for Canadians but assured that Ottawa is prepared to respond with retaliatory measures. Canada has already implemented a 1.3billion(USD900 million) border security plan, including new helicopters and imaging tools, to address U.S. concerns.

Mexican President Claudia Sheinbaum emphasized her country’s efforts to reduce illegal border crossings and fentanyl trafficking. While she expressed hope for continued dialogue, she confirmed that Mexico has contingency plans in place to respond to U.S. tariffs.

Political Fallout and Legislative Challenges
The tariffs come as Trump faces significant legislative challenges, including passing a budget, implementing tax cuts, and raising the federal debt ceiling. The success or failure of his tariff policy could influence his ability to advance these priorities.

Democrats have introduced legislation to strip the president of his authority to impose tariffs without congressional approval, though the measure is unlikely to pass in the Republican-controlled House and Senate.

Sen. Chris Coons (D-Del.) criticized the tariffs, stating, “If this weekend’s tariffs go into effect, they’ll do catastrophic damage to our relationships with our allies and raise costs for working families by hundreds of dollars a year. Congress needs to stop this from happening again.”

A Defining Moment for Trump’s Trade Policy
The tariffs represent a defining moment for Trump’s economic and national security agenda. While they fulfill a core campaign promise, they also carry significant risks for the U.S. economy and its relationships with key trading partners.

As the tariffs take effect, the world will be watching to see whether Trump’s gamble pays off or backfires, potentially reshaping the global trade landscape for years to come.


Reporting by The Associated Press.