President Donald Trump has set off a full-scale trade war just two weeks into his second term. On Saturday, he signed an order slapping major tariffs on imports from Mexico, Canada, and China, triggering immediate retaliation and a wave of outrage from North America’s closest allies.
Trump announced the move on social media, justifying the tariffs as necessary “to protect Americans.” He linked the drastic measures to demands for tougher action on fentanyl exports and illegal immigration from Canada and Mexico.
The tariffs—if they hold—could drive up inflation, threatening Trump’s campaign promise to lower costs for American families. With higher prices for groceries, gas, housing, and cars looming, the global economy and Trump’s political standing face major uncertainty.
Trump Declares Economic Emergency, Imposes Tariffs
Under his emergency declaration, Trump ordered a 10% tariff on all Chinese imports and a 25% tariff on goods from Mexico and Canada. Canadian energy exports, including oil, natural gas, and electricity, will be taxed at 10%. His executive order also includes a provision to escalate tariffs further if countries retaliate, raising the risk of an even deeper economic crisis.
Canadian Prime Minister Justin Trudeau condemned the move, calling it a betrayal. He announced Canada would hit back with 25% tariffs on up to $155 billion in U.S. goods, including alcohol and fruit.
“The actions taken today by the White House split us apart instead of bringing us together,” Trudeau said, reminding Americans of Canada’s long history of supporting the U.S. in military and humanitarian crises.
Mexico Rejects Trump’s Accusations, Hits Back With Tariffs
Mexican President Claudia Sheinbaum slammed the White House’s claims that Mexico enables drug trafficking, calling the accusations “slander.” She announced immediate retaliatory tariffs and other economic measures.
“If the U.S. government really wanted to fight fentanyl, they could start by cracking down on drug sales in their own cities and stopping the money laundering that fuels the crisis,” Sheinbaum wrote in a fiery post on X.
British Columbia’s Premier David Eby also called on Canadians to boycott alcohol from U.S. “red” states and ordered American liquor brands removed from government store shelves.
China Condemns Move, Threatens Legal Action
China’s Ministry of Foreign Affairs denounced Trump’s tariffs, vowing “necessary countermeasures” to defend its economy. The country accused the U.S. of hypocrisy, pointing to its ongoing anti-drug cooperation since 2019.
China’s Ministry of Commerce announced plans to file a lawsuit with the World Trade Organization over what it called Washington’s “wrongful practices.”
Tariffs Could Cost American Families Over $1,100 a Year
The tariffs take effect Tuesday, setting up a potential economic disaster. A Yale Budget Lab study predicts the average U.S. household will lose about $1,170 annually due to higher costs. Inflation is expected to spike further, and global trade could take a severe hit.
Democrats wasted no time blaming Trump for future price hikes. Senate Majority Leader Chuck Schumer blasted the move in a series of X posts.
“You’re worried about grocery prices? Don’s raising prices with his tariffs,” Schumer wrote. “You’re worried about tomato prices? Wait till Trump’s Mexico tariffs raise your tomato prices.”
Trump’s Gamble: Will Tariffs Backfire?
A senior White House official admitted the lower 10% tariff on Canadian energy was meant to avoid a gas and utility price spike—an acknowledgment of the risk Trump is taking. Soaring inflation under Joe Biden helped fuel Trump’s return to office, but now he’s rolling the dice on trade.
Unlike past tariffs, Trump’s order allows no exceptions, meaning homebuilders, farmers, and automakers relying on Canadian materials could take a hit. There’s no clear path to lifting the tariffs either—Trump’s team says the only benchmark is “fewer Americans dying from fentanyl.”
Global Trade on Edge as Trump Targets More Goods
Trump is doubling down, signaling even more tariffs ahead. On Friday, he teased additional taxes on imported steel, oil, gas, pharmaceuticals, and European goods—potentially sparking conflict with even more global players.
Trudeau urged Canadians to brace for economic pain but held out hope for the U.S.-Canada relationship.
“We didn’t ask for this, but we won’t back down,” he said. “This will hurt workers on both sides of the border, and it didn’t have to be this way.”
