Washington, Feb 2: US President Donald Trump signed an executive order on Saturday imposing 25% tariffs on goods from Mexico, as well as 25% on goods from Canada, except for Canadian energy resources which will face 10% in tariffs. The duties on Canada will take effect on Tuesday, Deutsche Welle, the German news site reported.
The document also imposes a 10% tariff on imports from China.
According to the White House, the executive order includes a retaliation clause, meaning further measures are possible if the targeted countries respond with measures of their own.
The move hits America's biggest trading partners. In 2023, Canada and Mexico bought US goods and services worth $808 billion (€768 billion), according to the US Department of Commerce's Bureau of Economic Analysis, the German news site said.
At the same time, Canada and Mexico sent $1.01 trillion worth of goods to the US. The US trade deficit with Canada is over $40 billion, while the trade deficit with Mexico is over $162 billion.
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US holding China, Mexico, and Canada 'accountable' for fentanyl crisis
Trump previously accused the two neighboring countries of failing to crack down on illegal migrants crossing the border into the United States and stamp out the flow of fentanyl. In a statement, Washington also said China is to blame for the drug entering into the US.
"President Donald Trump is taking decisive action to protect Americans from the fentanyl crisis," the White House posted in a statement on X.
"Fentanyl is the leading cause of death for Americans ages 18 to 45. Today's tariff announcement is necessary to hold China, Mexico, and Canada accountable for their promises to halt the flood of poisonous drugs into the United States."
Canada’s Prime Minister Justin Trudeau said he had met with the country’s premiers and the Cabinet and would also be speaking to Mexico’s President Claudia Sheinbaum.
“We did not want this, but Canada is prepared. I’ll be addressing Canadians later this evening,” Trudeau said in a post on X.
On Friday, Trudeau warned of a "forceful and immediate response" if the US followed through with the threat of tariffs.
The American Fuel and Petrochemical Manufacturers Association (AFPM) said in a statement that it hoped Trump's decision to impose tariffs on Canadian and Mexican oil and energy products would not last long, added the newsite.
The AFPM represents companies including Chevron Corporation, ExxonMobil, Koch Industries, Marathon Petroleum and Valero Energy.
"We are hopeful a resolution can be quickly reached with our North American neighbors so that crude oil, refined products and petrochemicals are removed from the tariff schedule before consumers feel the impact," the group said in a statement posted on social media platform X.
According to the Deutsche Welle, the Canadian Chamber of Commerce meanwhile said Trump's decision was "profoundly disturbing" and that it will have "immediate and direct consequences on Canadian and American livelihoods."
The DW further added that the Canadian Chamber of Commerce meanwhile said Trump's decision was "profoundly disturbing" and that it will have "immediate and direct consequences on Canadian and American livelihoods."
