US-Canada Tariff War, Donald Trump Trade War: Trump imposed a 25% tariff on all goods imported from Mexico and Canada, with the exception of energy products from Canada, which would be taxed at 10%. President Donald Trump signed an executive order on Saturday imposing steep tariffs on imports from Canada, Mexico, and China, a move that he says is aimed at protecting American workers and stemming the flow of illicit drugs like fentanyl. The action quickly escalated tensions with the US’s neighbours imposing retaliatory levies against Washington.
Trump justified the tariffs by citing the need to curb the manufacture and export of fentanyl and pressuring Canada and Mexico to reduce illegal immigration into the US. The tariffs, however, risk undermining Trump’s political promise to lower the cost of living for Americans by making essential goods more expensive.
The tariffs: What’s being imposed
Under the order, Trump imposed a 25% tariff on all goods imported from Mexico and Canada, with the exception of energy products from Canada, which would be taxed at 10%. Goods from China would face a 10% tariff across the board. The administration has indicated that if Canada and Mexico retaliate with their own measures, the US could raise its tariffs even further, potentially igniting a larger economic conflict.
