Trump’s Tariffs on Mexico, Canada, and China Take Effect; Countries Retaliate

The tariffs announced by U.S. President Donald Trump on imports from Mexico, Canada, and China officially took effect on Tuesday, ending weeks of speculation over their implementation.

Originally scheduled for the previous month, the tariffs were delayed by 30 days as Trump urged these countries to crack down on the flow of fentanyl into the U.S. However, on Monday, the Republican president made it clear that there was “no room” for negotiations with Canada and Mexico, confirming that the tariffs would go into effect as planned.

Under the new policy, U.S. imports from Canada and Mexico are now subject to a 25% tariff, while China faces an additional 10% tariff on top of the existing 10% levy.

As the tariffs took effect at midnight on Tuesday, all three nations swiftly responded with countermeasures.

How Canada, Mexico, and China Hit Back

Canada

Outgoing Canadian Prime Minister Justin Trudeau announced retaliatory 25% tariffs on U.S. goods worth 30 billion Canadian dollars, effective immediately. An additional 125 billion Canadian dollars in tariffs will be imposed within the next 21 days.

“Our tariffs will remain in place until the U.S. trade action is withdrawn,” Trudeau stated, adding that if the U.S. tariffs persist, Canada is prepared to take further non-tariff measures in coordination with provincial and territorial governments. (Source: Reuters)

Mexico

Mexico, the U.S.’ southern neighbor, had already prepared countermeasures in anticipation of Trump’s move. On Monday, Mexican President Claudia Sheinbaum confirmed that the government had backup plans ready in response to the tariffs, though she withheld specific details.

China

China also announced its own set of retaliatory tariffs, mainly targeting U.S. agricultural products. The Chinese finance ministry declared that additional tariffs ranging from 10% to 15% would be imposed on soybeans, corn, dairy, and beef, among other products.

According to Reuters, U.S. products facing 10% tariffs in China include soybeans, sorghum, pork, beef, aquatic products, fruits, vegetables, and dairy products. Additionally, a 15% tariff will be applied to chicken, wheat, corn, and cotton.

Beyond tariffs, China has also imposed export and investment restrictions on 25 U.S. firms, signaling a broader economic standoff.

Escalating Trade War

With all three nations responding aggressively, Trump’s tariff strategy is expected to further strain trade relations and intensify economic tensions. The coming weeks will reveal whether negotiations resume or if the trade war escalates further.