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Mexico and Canada retaliate with new tariffs on US imports
Posted on February 3, 2025 |
Trump signed an executive order imposing 25% tariffs on imports from Canada and Mexico, with Chinese goods facing an extra 10% tariff.
Canadian energy imports will be taxed at a reduced 10%.
The U.S. tariffs on all three countries will begin on Tuesday.
Canada will impose 25% tariffs on $155 billion of U.S. imports, covering items like beer, wine, bourbon, fruits, vegetables, perfume, clothing, and shoes.
Mexico will introduce tariffs on U.S. goods, but the exact details are still unclear.
Trump stated that the tariffs are meant to encourage Mexico and Canada to help curb illegal immigration and drug trafficking, particularly fentanyl.
The tariffs were enacted using the International Emergency Economic Powers Act to combat the threat of illegal immigration and drugs.
In 2024, trade between the U.S. and Mexico totaled $776 billion, with Canada at $699 billion and China at $532 billion.