US Tariffs on China, Canada, Mexico Begin; Nations Retaliate

The tariffs imposed by U.S. President Donald Trump on imports from China, Canada, and Mexico went into effect Tuesday, concluding weeks of uncertainty surrounding the trade policy shift.

Originally scheduled for implementation last month, the tariffs were delayed by 30 days as the U.S. sought commitments from the three countries to curb fentanyl-related exports. With negotiations failing to yield a resolution, the White House proceeded with the planned trade penalties.

The measures impose a 25 per cent tariff on goods imported from Canada and Mexico, while Chinese imports face an additional 10% levy on top of pre-existing duties. These tariffs were activated at midnight, prompting swift responses from the affected nations.

Canadian Prime Minister Justin Trudeau confirmed a 25 per cent tariff on U.S. goods valued at 30 billion Canadian dollars ($22 billion USD), effective immediately. Additional tariffs, covering an estimated 125 billion Canadian dollars ($92 billion USD) in U.S. imports, will be introduced within three weeks.

“Our response will remain in place as long as these U.S. trade actions persist,” Trudeau stated, adding that discussions with provincial governments on non-tariff measures were ongoing.

Mexican President Claudia Sheinbaum signaled that her government had contingency strategies in place. Without disclosing specifics, she assured that Mexico was prepared to counteract U.S. tariffs with economic measures designed to mitigate potential impacts.

China’s finance ministry announced reciprocal tariffs on key U.S. agricultural products, applying levies between 10% and 15% on items such as soybeans, corn, dairy, beef, and seafood.

Additionally, Beijing placed a 15 per cent tariff on U.S. chicken, wheat, and cotton while imposing investment and export restrictions on 25 American firms.

The tariff measures mark a new phase in U.S. trade relations with three of its largest trading partners. While the administration defends the move as necessary to protect domestic industries, affected countries are preparing for economic repercussions. The dispute is expected to impact multiple sectors, from agriculture to manufacturing, as retaliatory tariffs add pressure on American exports.

With no immediate resolution in sight, trade analysts anticipate prolonged negotiations and further disruptions in global supply chains. Business leaders and policymakers continue to assess the broader economic implications of the escalating tariff conflict.