Trump launches trade war with tariffs on Mexico, Canada and China

Published
0

WASHINGTON: US President Donald Trump on Saturday ordered sweeping tariffs on goods from Mexico, Canada and China, demanding they stanch the flow of fentanyl — and illegal immigrants in the case of Canada and Mexico — into the United States, kicking off a trade war that could dent global growth and reignite inflation.

Mexico and Canada, the top two US trading partners, immediately vowed retaliatory tariffs, while China said it would challenge Trump’s move at the World Trade Organisation and take other “countermeasures”.

In three executive orders, Trump imposed 25 per cent tariffs on Mexican and most Canadian imports and 10 per cent on goods from China, starting on Tuesday.

He vowed to keep the duties in place until what he described as a national emergency over fentanyl, a deadly opioid, and illegal immigration to the US ends. The White House provided no other parameters for determining what might satisfy Trump’s demands.

Responding to concerns raised by oil refiners and Midwestern states, Trump imposed only a 10pc duty on energy products from Canada, with Mexican energy imports facing the full 25pc tariff.

The White House officials said there would be no exclusions from the tariffs. Moreover, in the case of Canada specifically, they said the “de minimis” US tariff exemption for small shipments under $800 would be canceled.

The moves follow through on a repeated threat Trump has made since shortly after winning last year’s presidential election. Trump set the Feb 1 deadline to press for strong action to halt the flow of the opiate fentanyl and precursor chemicals into the US from China via Mexico and Canada, as well as to stop illegal immigrants crossing US borders.

Canadian Prime Minister Justin Trudeau said Canada would respond with 25pc tariffs against $155 billion of US goods, including beer, wine, lumber and appliances, beginning with $30 billion taking effect on Tuesday and $125 billion 21 days later.

Trudeau warned US citizens that Trump’s tariffs would raise their grocery and gasoline costs, potentially shutting down auto assembly plants and limiting supplies of goods such as nickel, potash, uranium, steel and aluminum.

He urged his own citizens to forego travel to the US and to boycott US products.

Mexican President Cla­udia Sheinbaum, in a post on X, said she was instructing her economy minister to implement retaliatory tariffs but gave no details.

Canada and Mexico said they were working together to face Trump’s tariffs. China’s Commerce Ministry did not specify its planned countermeasures.

Its statement left open the door for talks between Washington and Beijing.

Published in Dawn, February 3rd, 2025

Opinion

Editorial

Regional security
Updated 28 Oct, 2026

Regional security

Iran and the Makkah pact states should pledge not to let external actors use their soil to launch aggression against each other.
Rate hike
28 Oct, 2026

Rate hike

THE SBP’s decision to raise its policy rate by 50 basis points to 12pc was largely expected. It is also justified...
Press solidarity
28 Oct, 2026

Press solidarity

PAKISTAN’S journalists have seldom lacked organisations speaking in defence of press freedom. What has been ...
Privatisation framework
Updated 27 Oct, 2026

Privatisation framework

The proposed merger of the Privatisation Commission and the Public-Private Partnership Authority (P3A) into a single institution is a sensible move.
Chromebook scheme
Updated 27 Oct, 2026

Chromebook scheme

Technology can widen opportunity, but only when it is tied to good teaching, reliable connectivity and clear educational purpose.
Dengue season
27 Oct, 2026

Dengue season

ANOTHER dengue outbreak looms over the country for reasons of lack of preparedness and negligence. This month’s...