Associated Press
On Saturday, President Donald Trump signed an order to impose stiff tariffs on imports from Mexico, Canada, and China. This move erupted into a trade war among the longtime allies, resulting in swift retaliation and an undeniable betrayal from the country’s North American neighbors.
The Republican President posted on social media that the tariffs were necessary “to protect Americans,” pressing the three nations to do more to curb the manufacture and export of illicit fentanyl and for Canada and Mexico to reduce illegal immigration into the U.S.
If sustained, the tariffs could significantly worsen inflation, threatening the trust many voters placed in Trump to lower the prices of groceries, gasoline, housing, autos, and other goods as promised. They also risked throwing the global economy and Trump’s political mandate into turmoil just two weeks into his second term.
Trump declared an economic emergency and ordered duties of 10% on all imports from China and 25% on imports from Mexico and Canada. Energy imported from Canada, including oil, natural gas and electricity, would be taxed at a 10% rate. Trump’s order includes a mechanism to escalate the rates charged by the U.S. against retaliation by other countries, raising the specter of an even more severe economic disruption.
“The actions taken today by the White House split us apart instead of bringing us together,” Canadian Prime Minister Justin Trudeau said in a somber tone as he announced that his country would put matching 25% tariffs on up to $155 billion in U.S. imports, including alcohol and fruit.
He channeled the betrayal that many Canadians are feeling, reminding Americans that Canadian troops fought alongside them in Afghanistan and helped respond to myriad crises, from wildfires in California to Hurricane Katrina.
“We were always there standing with you, grieving with you, the American people,” he said.
Mexico’s President also ordered retaliatory tariffs.
“We categorically reject the White House’s slander that the Mexican government has alliances with criminal organizations, as well as any intention of meddling in our territory,” Mexican President Claudia Sheinbaum wrote in a post on X while saying she had instructed her economy secretary to implement a response that includes retaliatory tariffs and other measures in defense of Mexico’s interests.
“If the United States government and its agencies wanted to address the serious fentanyl consumption in their country, they could fight the sale of drugs on the streets of their major cities, which they don’t do, and the laundering of money that this illegal activity generates that has done so much harm to its population.”
The premier of the Canadian province of British Columbia, David Eby, specifically called on residents to stop buying liquor from U.S. “red” states and said it was removing American alcohol brands from government store shelves as a response to the tariffs.
China’s Ministry of Foreign Affairs said the country’s government “firmly deplores and opposes this move and will take necessary countermeasures to defend its legitimate rights and interests.”
China began regulating fentanyl-related drugs as a class of controlled substances in 2019 and conducted “counternarcotics cooperation with the U.S.,” the ministry said, calling on the U.S. government to correct what it considers wrongful actions.
The Chinese Ministry of Commerce said it would sue the World Trade Organization for the “wrongful practices of the U.S.” and take measures to safeguard its rights and interests.
The tariffs will go into effect on Tuesday, setting up a showdown in North America that could potentially sabotage economic growth. A new analysis by the Budget Lab at Yale laid out the possible damage to the U.S. economy, saying the average household would lose the equivalent of $1,170 in income from the taxes. Economic growth would slow, inflation would worsen, and the situation could be even worse with retaliation from other countries.
Democrats quickly warned that any inflation going forward resulted from Trump’s actions.
“You’re worried about grocery prices. Don’s raising prices with his tariffs,” Senate Democratic Leader Chuck Schumer of New York wrote in a series of posts on X. “You’re worried about tomato prices. Wait till Trump’s Mexico tariffs raise your tomato prices,” read another. “You’re worried about car prices. Wait till Trump’s Canada tariffs raise your car prices,” read another.
A senior U.S. administration official, speaking on condition of anonymity to brief reporters, said the lower energy rate reflected a desire to minimize disruptive increases in the price of gasoline or utilities. That’s a sign that White House officials understand the gamble they’re taking on inflation. Price spikes under former President Joe Biden led to voter frustration that helped return Trump to the White House.
The official said Trump’s order contained no mechanism for granting exceptions, which could be a blow to homebuilders who rely on Canadian lumber, farmers, automakers, and other industries.
The official did not provide specific benchmarks that could be met to lift the new tariffs, saying only that the best measure would be fewer Americans dying from fentanyl addiction.
The order would also allow tariffs on Canadian imports of less than $800. Currently, imports below that sum can enter the United States without customs and duties.
“It doesn’t make much economic sense,’’ said William Reinsch, senior adviser at the Center for Strategic and International Studies and a former U.S. trade official. “Historically, most of our tariffs on raw materials have been low because we want to get cheaper materials so our manufacturers will be competitive … Now, what’s he talking about? He’s talking about tariffs on raw materials. I don’t get the economics of it.’’
With the tariffs, Trump is honoring promises at the core of his economic and national security philosophy. However, the announcement showed his seriousness regarding the issue, as some Trump allies had played down the threat of higher import taxes as mere negotiating tactics.
The President is preparing more import taxes, a sign that tariffs will be an ongoing part of his second term. On Friday, he mentioned imported computer chips, steel, oil, natural gas, copper, pharmaceutical drugs, and imports from the European Union — moves that could essentially pit the U.S. against much of the global economy.
Trudeau warned of economic pain as the tariffs take effect and encouraged Canadians to “choose Canadian products and services rather than American ones.” However, he also expressed optimism about the enduring relationship between the two countries.
“It is going to have real consequences for people, for workers on both sides of our border. We don’t want to be here. We didn’t ask for this, but we will not back down in standing up both for Canadians and for the incredible successful relationship between Canada and the United States,” Trudeau said.
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Republished with permission of The Associated Press.
28 comments
TruthBTold
February 2, 2025 at 9:04 am
I would not call Mexico an Ally, AP. Neighbor, yes, Ally, no.
And suddenly the AP cares about inflation? Really? When it was +9% under Biden-Harris, AP, you defended the policies that made inflation so high.
Seeing right through you.
TruthBTold
February 2, 2025 at 9:06 am
Allie, not ally. Stupid autocorrect.
Huck Finn
February 2, 2025 at 9:30 am
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Biscuit
February 2, 2025 at 12:28 pm
The autocorrect was correct. You (or it) had it right the first time, it’s ally. What made it look odd to you is that the plural of ally is allies, and the adjective form is allied. But the singular noun is ally.
Don’t don’t take my word for it, I’m just a dog.
Arf.
Michael
February 2, 2025 at 9:30 am
First of all, the AP runs articles written by individual authors. There was never an AP editorial board publishing opinions. And if you believe the AP should be in the business of censoring any opinion, then maybe you should check out the real estate listings in North Korea.
And it might be wise to actually wait until Trump tariffs result in lower inflation. Biden left office with 2.9%. When it goes below 2.5%, come back and mouth-off.
If Trump supporters actually understood trade tariffs, they would be touting a reduction in U.S. trade deficits, because as a tool of inflation reduction, these don’t even appear in the tool box.
EARL PITTS "International Expert" AMERICAN
February 2, 2025 at 10:41 am
CHASTIZED
PeterH
February 2, 2025 at 1:22 pm
The Trump tariffs of 2017 caused Biden’s inflationary rise. The delay was due to volumes of containers sitting on the docks in Asia and elsewhere. Republicans are horrible caretakers of the American economy…….as MAGA kooks will soon discover!
EARL PITTS "International Expert" AMERICAN
February 2, 2025 at 3:35 pm
CHASTIZED
ScienceBLVR
February 2, 2025 at 10:01 am
I’m no economist, but common sense tells me that retaliatory tariff wars with neighboring trading partners are not good for consumers on either side of the fence. I will say watching Trudeau on the BBC last night, explaining his rationale was impressive and demonstrated how a true leader handles a complex issue with his countrymen. Sure, he’s stepping down as dictated by his country’s rules for governing, but still, watching him speak, I was a bit envious of my Canadian neighbors returning to a country that inspires hope and normalcy. Contrast that with the clown we just elected and his response to complex issues. And Trudeau specifically mentioned Canadians giving up their FL OJ, so let’s see if the price goes down here
EARL PITTS "International Expert" AMERICAN
February 2, 2025 at 10:42 am
CHASTIZED
Skeptic
February 2, 2025 at 10:23 am
Canadian Bacon — rent or buy the movie today. Donnie is no Alan Alda, but . . .
Whatever
February 2, 2025 at 10:34 am
Someone should be paying for those hundreds of thousands deaths and medical expenses
Sheeza Hoser
February 2, 2025 at 10:59 am
I went to Publix today and I could hardly find a parking space for all the Ontario plates.
First of April cannot get here soon enough.
Biscuit
February 2, 2025 at 12:37 pm
Gosh, we wouldn’t want all those Canadians pumping their money into our economy, would we? I’m sure Publix can’t wait until they go away.
Arf.
Hoser
February 2, 2025 at 6:18 pm
We’ll live. So will Publix.
EARL PITTS "International Expert" AMERICAN
February 2, 2025 at 12:25 pm
America expect these Rouge Nations to come on bended knee to kiss Donald’s ring and prostrate themselves for a much deserved spanking or whatever pumishment Don deems appropriate.
IN CLOSEING:
I, EARL PITTS “International Expert” AMERICAN, suggest they all see their Doctors for some Sphincter Relaxing Medician to make it less painfull.
Thank you America,
MAGA
EARL PITTS “International Expert” AMERICAN
PeterH
February 2, 2025 at 3:22 pm
Making America Look Stupid Again!
EARL PITTS "International Expert" AMERICAN
February 2, 2025 at 3:36 pm
CHASTIZED
Michael K
February 2, 2025 at 5:08 pm
The Wall StreetJournal calls Trumps tariffs “the dumbest trade war in history.” But don’t worry, it’s only going to cost you an extra $2,000.
PeterH
February 3, 2025 at 8:19 am
While the USA pursues its doomed self centered “America First” isolationist policies……our primary trading partners have been working behind the scene in anticipation of Trump’s tariffs and forming multilateral trading agreements WITHOUT USA MEMBERSHIP. Read today’s NYT article titled “ One Response to Trump’s Tariffs: Trade That Excludes the U.S.”
Americans thought it was a good idea to install a misogynist, six time bankrupt convicted felon in the Oval Office with the intention of destroying our economy and democracy. Yes indeed, The Golden Era for America has commenced!
Ron Ogden
February 3, 2025 at 9:14 am
Tariffs force ither countries to behave, and they redress economic wrongs. Canada, China and Mexico have made vast amounts of money off us, mostly through open trading but sometimes through making black markets in drugs and people. The leaders of these countries knew last November that the new president would put up tariffs, but they did nothing to show they would work with us to avoid them. Now, they whine and cry, and so do their mouthpieces here, as we read.
Ocean Joe
February 3, 2025 at 10:09 am
In other words, if you agree with 16 leading economists who believe the tariffs will backfire, you become a mouthpiece for China, or Canada, or Mexico?
I guess all that “democracy is over” crap had a ring of truth.
Michael K
February 3, 2025 at 9:33 am
America First” really means Trump first. Look at Great Britain: Brexit was approved by only a slightly higher margin (51%) than Trump (49%). But five years later, only 30% of people think it was a good idea – the vast majority see it as a huge mistake. Great Britain has failed to prosper since leaving the European Union.
Secondly, what is the US doing to address the drug problem with the American people? And for complaints of all of the drugs coming in, the US is illegally sending unwelcome weapons of death – guns – to other countries, including Canada and Mexico.
Lastly, Trump never keeps his word or a deal. Remember, the trade agreements with Canada and Mexico were his work. Blowing things up is not governance – it’s bad theater, not policy.
Ron Ogden
February 3, 2025 at 12:29 pm
Mexico to reinforce the border with 10,000 troops at its own expense. Tariffs suspended. Trump wins again.
Michael K
February 3, 2025 at 3:09 pm
No, not quite. She played Trump, who agreed to stop illegal shipments of guns. The Mexican National guard is not “rushing” to the border. It’s all smoke and mirrors to make Trump look like less of a moron than he is.
Mark
February 4, 2025 at 12:22 am
They don’t expect Trumpanzees like Ron to critically think. They expect them to do as trained. Watch Faux Noiz, listen to Faux Radio and regurgitate the daily talking points. The daily dose of hate. 1984 all along.
Sunny days
February 8, 2025 at 10:03 am
Haven’t these countries made themselves independent from america yet
Sunny days
February 8, 2025 at 10:03 am
You know sovereign
Comments are closed.