President Donald Trump is implementing extensive tariffs on key US trading partners—Canada, Mexico, and China—the White House announced yesterday, citing an “extraordinary threat” posed by illegal immigration and drug trafficking.
Exports from Canada and Mexico to the United States will incur a 25% tariff, though Canadian energy resources will be subject to a reduced 10% levy. The tariffs for Canada will take effect on Tuesday.
Trump announced that goods from China, already subject to different duty rates, will face an extra 10 percent tariff.
He utilized the International Emergency Economic Powers Act to impose tariffs, with the White House stating that “the extraordinary threat from illegal immigration and drugs, including lethal fentanyl, represents a national emergency.”
The goal is to ensure all three countries fulfill their commitments to stop illegal immigration and prevent the influx of fentanyl and other harmful drugs into our nation, the White House stated.
Washington accused the Mexican government of forming an “unacceptable alliance” with drug trafficking organizations.
The announcement poses a risk of significant disruptions across supply chains, affecting sectors from energy and automobiles to food.
Trump has consistently expressed his enthusiasm for tariffs, indicating that yesterday’s move might be just the beginning of future trade disputes.
This week, he made a commitment to enact future tariffs targeting the European Union.
He has also pledged to impose tariffs on semiconductors, steel, aluminum, and oil and gas.
“Tariffs are a powerful, proven source of leverage for protecting the national interest,” the White House said.
While spending the weekend in Florida, Trump posted on social media, “Ensuring the safety of all Americans is my responsibility as President.”
