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President Donald Trump has frequently discussed the possibility of imposing tariffs on other countries, and this weekend, he followed through on that promise.
On Saturday, Trump signed an order imposing significant tariffs on imports from Mexico, Canada, and China. He declared an economic emergency, which allowed him to implement a 10% tariff on all imports from China, and a 25% tariff on goods coming from Mexico and Canada.
Shortly after the announcement, China’s commerce ministry stated it would file a complaint with the World Trade Organization and “take corresponding countermeasures,” though no details were given. Meanwhile, Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau expressed strong disapproval, outlining their plans to retaliate against Trump’s decision.
Read on to learn more about what a tariff is, why Trump imposed them, and how Mexico and Canada have responded.
What Is a Tariff?
A tariff is a tax or duty imposed by a government on imported or exported goods. It’s typically used to raise revenue for the government or to protect domestic industries by making foreign products more expensive. Tariffs can be applied to a wide range of goods, from raw materials to finished products, and they can vary in size depending on the item and the country.
Why Did Trump Impose Tariffs on Mexico and Canada?
Trump took to social media, stating that the tariffs were essential “to protect Americans.”
He urged Canada and Mexico to take stronger actions to curb the production and export of illicit fentanyl, while also pressing both nations to reduce illegal immigration into the United States.
JUST IN: 🇺🇸 White House says 25% tariffs on Canada, Mexico, and 10% on China will go into effect tomorrow. pic.twitter.com/OxcWcnWOUs
— Watcher.Guru (@WatcherGuru) January 31, 2025
How Did Mexico Respond to U.S. Tariffs?
Mexico’s president issued an order for retaliatory tariffs in response to the U.S. actions over the weekend. Sheinbaum took to X to reject accusations from the White House, calling them “slander” and denying any ties between the Mexican government and criminal organizations. Sheinbaum emphasized that she had instructed the country’s economy secretary to take action, including the implementation of the retaliatory tariffs and other measures to protect Mexico’s interests.
“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 added.
On Monday, February 3, Sheinbaum announced on social media, roughly 12 hours before the tariffs were set to take effect, that a deal had been made with the Trump administration to delay the tariffs. In exchange for a pause on the 25% tariffs, Sheinbaum agreed to deploy 10,000 additional troops, who President Trump said would be tasked with stopping the flow of migrants and illegal drugs across the U.S.-Mexico border.
pic.twitter.com/DC5Mx8yCiB
— Donald J. Trump (@realDonaldTrump) February 3, 2025
How Did Canada React to U.S. Tariffs?
Trudeau first responded to the Trump’s tariffs by announcing that Canada would also impose reciprocal 25% tariffs on up to $155 billion worth of U.S. imports, including items like alcohol and fruit.
Trudeau expressed disappointment, stating that the White House’s actions had created division rather than fostering unity. He reminded Americans of Canada’s longstanding support, highlighting that Canadian troops had fought alongside U.S. forces in Afghanistan and had assisted in various crises, from wildfires in California to Hurricane Katrina.
Canada’s response to U.S. tariffs. Justin Trudeau’s best speech.
Canada will place 25% tariffs on $155 billion in US imports in retaliation for Trump tariffs. That is an addition to a nationwide boycott on all US products across Canada. #cdnpoli #tariffwar pic.twitter.com/VJavxmO6nH
— Anonymous (@YourAnonCentral) February 2, 2025
On Monday, Trump said he expects another “good conversation” with Trudeau after speaking with Sheinbaum. A call between the two leaders is scheduled for 3 p.m. Eastern time.
As of now, the 25% tariffs on Canada are still set to take effect on Tuesday, February 4.
