Canadian, Mexican and Chinese language flags.
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U.S. President Donald Trump on Saturday imposed long-threatened tariffs on imports from Canada, Mexico and China — and it did not take lengthy for the nations to reply.
Trump signed an order slapping 25% tariffs on items from Mexico and Canada, and a ten% responsibility on Chinese language imports, as a result of begin on Tuesday. Power sources from Canada face a decrease, 10% tariff to “reduce any disruptive results we would have on gasoline and residential heating oil costs,” in accordance with a senior administration official.
Within the government order, Trump mentioned that if the nations — the U.S.’s three-largest buying and selling companions — retaliate, it might be met with an “improve or develop in scope” of the duties already imposed.
In a post on X, Trump mentioned the duties had been imposed “due to the key risk of unlawful aliens and lethal medicine killing our Residents, together with fentanyl.”
The U.S. does about $1.6 trillion in enterprise annually with Canada, Mexico and China. The tariffs are anticipated for use as each bargaining chips and strategies to impact overseas coverage modifications — particularly concerning immigration and drug commerce points — by the Trump administration.
Response from one of many three nations was swift and decisive, whereas the others appeared to take extra of a wait-and-see method to Trump’s tariffs. The European Union can also be watching how the newly imposed tariffs will play out, after Trump not too long ago took aim at the EU for what he claims is an unequal commerce relationship. Here’s a have a look at their responses.
Canada
Canadian Prime Minister Justin Trudeau slapped retaliatory tariffs of 25% in opposition to $155 billion of U.S. items quickly after the Trump tariffs have been introduced.
Canada’s Prime Minister Justin Trudeau speaks, flanked by (from L) Minister of Public Security David McGuinty, Minister of International Affairs Melanie Joly and Minister of Finance and Intergovernmental Affairs Dominic LeBlanc, throughout a information convention Feb. 1, 2025.
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He mentioned duties on $30 billion price of U.S. items will probably be imposed on Tuesday, with tariffs on an additional $125 billion price of merchandise are as a result of be launched in 21 days, “to permit Canadian corporations and provide chains to hunt to seek out alternate options.”
“Just like the American tariffs, our response will even be far-reaching and embrace on a regular basis gadgets comparable to American beer, wine and bourbon, fruits and fruit juices, together with orange juice, together with greens, fragrance, clothes and footwear,” Trudeau mentioned in a press convention on Saturday night. “It’s going to embrace main client merchandise like family home equipment, furnishings and sports activities gear, and supplies like lumber and plastics, together with a lot, far more.”
Addressing Americans immediately, Trudeau added: “It is a selection that, sure, will hurt Canadians, however past that, it’s going to have actual penalties for you, the American individuals.”
Retaliatory tariffs are anticipated to additional exacerbate worth hikes in each the U.S. and elsewhere. The worth of every part from vehicles and electronics to toys and meals is expected to be impacted.
Trudeau added that “it does not need to be this fashion.”
“Sure, we have had our variations up to now, however we have all the time discovered a technique to get previous them. As I’ve mentioned earlier than, if President Trump desires to usher in a brand new golden age for the USA, the higher path is to associate with Canada, to not punish us,” he mentioned.
In the meantime, Ontario mentioned it’s going to pull all American alcohol merchandise from its government-run liquor cabinets starting Tuesday in response to the tariffs. Shops of the Liquor Management Board of Ontario will even take U.S. merchandise out of its catalog so different retailers cannot order or restock these gadgets, in accordance with a Sunday statement by Premier Doug Ford.
Mexico
Mexico additionally vowed retaliation following the information, though didn’t reveal specifics.
President Claudia Sheinbaum slammed Trump’s tariffs and mentioned she had instructed the secretary of the financial system to “implement the Plan B now we have been engaged on, which incorporates tariff and non-tariff measures in protection of Mexico’s pursuits.”
Mexico’s President Claudia Sheinbaum gestures as she speaks about U.S. President Donald Trump’s insurance policies throughout a press convention on the Nationwide Palace, in Mexico Metropolis, Mexico, January 21, 2025.
Henry Romero | Reuters
In a long post on X, the president added: “We categorically reject the White Home’s slander of the Authorities of Mexico alleging alliances with prison organizations, in addition to any intention to intrude in our territory.”
“Mexico doesn’t need confrontation. We begin from the collaboration between neighboring nations,” she mentioned within the put up, translated by NBC. “Mexico not solely doesn’t need fentanyl to succeed in the USA, it doesn’t need it to succeed in wherever.”
“We should work collectively in a complete method, however all the time beneath the ideas of shared duty, mutual belief, collaboration and above all, respect for sovereignty, which is non-negotiable. Coordination, sure; subordination, no,” she added.
China
China mentioned it might file a lawsuit with the World Commerce Group in response to the duties, and “take essential countermeasures.”
“The U.S.’s unilateral tariff hike significantly violates WTO guidelines, does nothing to resolve its personal points, and disrupts regular financial and commerce cooperation between China and the U.S.,” the Chinese language Ministry of Commerce mentioned in a press release Sunday, in accordance with an NBC translation.
“In response to this wrongful motion, China will file a lawsuit with the WTO and take essential countermeasures to firmly safeguard its rights and pursuits.” China has complained to the WTO over tariffs earlier than, notably regarding the EU’s tariffs on Chinese EVs final yr.

The truth that China stopped in need of immediate escalation has raised hopes that there might be some room to keep away from an all-out commerce battle between the 2 nations. The decrease, 10%-tariffs imposed on Chinese language-made items can also be a reduction given repeated threats made by Trump on the marketing campaign path to impose duties of 60% or extra on imports from the nation.
In its assertion, China pushed again on Trump’s feedback about fentanyl, describing it as a “home problem.”
“China urges the U.S. to take an goal and rational method to its home points, together with fentanyl, relatively than resorting to tariff threats in opposition to different nations,” it mentioned.
Artificial opioid fentanyl is an addictive drug that causes many hundreds of overdose deaths annually within the U.S. The chemical substances wanted to make the drug are principally produced in China and Mexico. Washington and Beijing had previously agreed to cooperate on the problem.
The EU
The European Union mentioned Sunday that it “regrets” the U.S. determination to impose tariffs on Canada, Mexico and China, and would “reply firmly” if Trump imposed tariffs on the EU, in accordance with a European Fee spokesperson.
Trump has made no secret of his opinion that the U.S. and the EU have what he has claimed is an unequal trade relationship.
“From the standpoint of America, the EU treats us very, very unfairly, very badly,” Trump mentioned in a digital deal with to the World Financial Discussion board in Davos, Switzerland, this month.
The EU will not be at the moment conscious of any extra tariffs being positioned on its merchandise, the spokesperson mentioned.
“Our commerce and funding relationship with the U.S. is the largest on this planet. There’s a lot at stake,” the spokesperson mentioned. “Throughout-the-board tariff measures increase enterprise prices, hurt staff and shoppers. Tariffs create pointless financial disruption and drive inflation. They’re hurtful to all sides.”
Trump has beforehand vowed to put tariffs on the EU, along with his newest assertion on Friday including that he would “completely” achieve this. Tensions between Trump and the EU have been already excessive after the president made a proposal to purchase Greenland.
‘World commerce battle’
In a observe on Sunday, Paul Ashworth, Capital Economics’ chief North America economist, mentioned Trump’s tariffs on Canada, Mexico and China have been “simply the primary strike in what may change into a really harmful international commerce battle.”
He mentioned he expects European Union imports to be focused within the subsequent couple of months, with common tariffs — a lot heralded by Trump on the marketing campaign path — anticipated in April.
The financial influence will probably be important for all nations concerned, in accordance with Ashworth.
“Since exports to the U.S. account for round 20% of their GDP, in the present day’s tariffs may plunge each the Canadian and Mexican economies into recession later this yr,” he wrote.
“The ensuing surge in U.S. inflation from these tariffs and different futures measures goes to return even sooner and be bigger than we initially anticipated.”
—CNBC’s Tanaya Macheel, Kevin Breuninger, Jeff Cox and Laya Neelakandan contributed to this report.