US President Donald Trump has announced new tariffs on imports from Mexico, Canada and China, as expected. The administration claims the measures are intended to curb the flow of drugs and illegal immigrants into the United States.
Specifically, the tariffs will be 25% on all imports from Mexico and most goods from Canada, as well as a 10% rate on energy products from Canada and Chinese goods, with the new tariff added to the existing one in the case of China. The exemption for small goods valued at up to $800, previously applicable to many US small businesses and Chinese e-commerce platforms like Shein and Temu, will be eliminated.
The move is likely to significantly disrupt the almost duty-free trade between the three North American countries and could lead to significant price increases in the US. At the same time, the already long-standing trade war between China and the United States has escalated another step.
Following the US administration’s announcement, Mexican President Claudia Sheinbaum stated that her country would impose retaliatory tariffs, while Canadian Prime Minister Justin Trudeau announced “far-reaching” retaliatory measures, initially targeting specific product groups that will be expanded later.
Experts expect Trump to further increase the tariffs in response. The US President acknowledged potential negative consequences for US consumers on Friday, saying, “There could be short-term, temporary disruptions, but people will understand.” “But the tariffs will make us very rich and very strong” he added.