WASHINGTON, D.C. – President Donald Trump has implemented sweeping new tariffs on imports from Canada, Mexico, and China, escalating global trade tensions and prompting swift retaliatory measures from affected nations.
Effective overnight, the U.S. imposed 25% tariffs on imports from Canada and Mexico, while an additional 10% tariff on Chinese goods took effect Monday. Trump said the tariffs are intended to pressure these countries into stronger cooperation on immigration enforcement and drug smuggling prevention.
Mexico and Canada Retaliate
Mexican President Claudia Sheinbaum responded Tuesday, announcing her government will introduce its own countermeasures, including tariffs and other trade restrictions, beginning Sunday.
Meanwhile, Canadian Prime Minister Justin Trudeau immediately slapped tariffs on $30 billion worth of U.S. goods and vowed to expand the levies to $125 billion in American products within three weeks, according to CBC.
China also reacted swiftly, raising tariffs up to 15% on U.S. agricultural products like beef, chicken, and pork, set to take effect Monday. The move follows Trump’s recent increase in tariffs on Chinese imports from 10% to 20% on Tuesday.
Sheinbaum Calls for Unity Amid Trade Dispute
Despite Mexico’s retaliatory measures, Sheinbaum emphasized her willingness to seek a diplomatic resolution with the U.S.
“Nobody wins with this decision,” she said at her daily news conference. “There is no reason that justifies these actions. … I call on the people of Mexico to face this challenge together, to remain united.”
Potential Economic Fallout
The trade dispute could have far-reaching consequences for businesses and consumers. The U.S. and Mexico recorded a historic $840 billion in trade in 2024, making Mexico America’s top trade partner for the second year in a row. Canada ranked second at $761 billion, while China followed at $582 billion.
Trade experts warn the tariffs could lead to higher prices, supply chain disruptions, and financial strain on businesses.
With tensions escalating, the global economy now braces for the potential ripple effects of this latest trade war.
