Canada, Mexico, and China Respond to Trump's New Tariffs with Retaliatory Measures

U.S. allies Canada and Mexico announce their own tariffs, while China vows to take legal action, signaling escalating economic tensions.

WASHINGTON — In a move that has sparked widespread criticism, President Donald Trump’s recent decision to implement new tariffs on goods imported from Canada, Mexico, and China has led to swift retaliation from the affected countries, threatening further economic disruptions among key U.S. trading partners.

Hours after Trump’s executive orders were signed, Canada and Mexico confirmed that they would impose their own tariffs on U.S. goods, signaling a deepening rift in their trade relations. Meanwhile, China refrained from announcing immediate retaliatory tariffs, instead pledging to file a lawsuit with the World Trade Organization (WTO) and take "necessary countermeasures" to protect its economic interests.

Trump's tariffs were introduced as part of his ongoing effort to combat the flow of fentanyl and undocumented immigrants into the U.S., with a 25% tariff on imports from Mexico and Canada (excluding Canadian energy products, which would face a 10% tariff) and a 10% tariff on Chinese goods.

The tariffs are set to begin being collected on Tuesday, though the White House has stated that they will remain in place "until the crisis is alleviated," without providing further details on when or how that might happen.

In 2022, Canada, Mexico, and China accounted for over 40% of U.S. imports, and the escalating tariff war is expected to drive up prices for consumers in both the U.S. and abroad, potentially affecting the cost of a wide range of products from electronics and food to automobiles.

Canada’s Response

Canadian Prime Minister Justin Trudeau was the first to provide specific details of his country’s response. On Saturday, he announced that Canada would impose retaliatory tariffs on approximately $155 billion worth of U.S. goods — roughly $106 billion in U.S. terms. Trudeau confirmed that tariffs on $30 billion worth of American goods would take effect as early as Tuesday, with the remaining tariffs set to be implemented over the next three weeks to give Canadian companies time to adjust.

The list of items affected by the tariffs is extensive, including everyday products such as American beer, wine, bourbon, fruits, vegetables, clothing, and household appliances. Trudeau made it clear that Canada's response would be far-reaching and would have a tangible impact on U.S. exports to Canada.

In his address, Trudeau appealed directly to the American people, stating that Trump’s tariffs would have real consequences for them and urging Canadians to support their domestic economy by choosing Canadian-made products.

Mexico’s Stance

Mexican President Claudia Sheinbaum also expressed strong opposition to the tariffs, calling them unjust and harmful to Mexico’s interests. She instructed her Secretary of the Economy to implement a “Plan B,” which includes both tariff and non-tariff measures, although specific details have yet to be revealed.

Sheinbaum also rejected Trump’s assertions about Mexico’s involvement in criminal activities, stating that Mexico is committed to preventing the flow of fentanyl into the United States and emphasizing the importance of collaborative efforts based on mutual respect and shared responsibility.

China’s Legal Action

China, a major competitor of the United States in global trade, responded by condemning the tariffs and vowing to file a lawsuit with the WTO. The Chinese Commerce Ministry called on the U.S. to "correct its mistakes" and engage in dialogue based on equality and mutual respect. China’s government has suggested that the new tariffs could hinder future cooperation on counter-narcotics efforts between the two nations.

While the U.S. has blocked the appointment of appellate judges to the WTO for years, preventing the organization from effectively mediating trade disputes, China may still be able to rally international support for its case against the tariffs.

Fentanyl and Domestic Demand

The U.S. government has justified the tariffs by pointing to the threat of fentanyl trafficking and the need to curb illegal immigration. However, experts have noted that the majority of fentanyl seizures by U.S. Customs and Border Protection occur along the southern border, not the northern border with Canada.

Both Mexico and China have emphasized that the U.S. needs to address its own domestic demand for fentanyl, as international cooperation on narcotics control may be jeopardized by such aggressive trade measures.

Looking Ahead

As the U.S. faces retaliatory tariffs from its close allies and competitors, the future of trade relations remains uncertain. Trump's tariffs were initially promised during his campaign, with a focus on reducing the U.S. trade deficit and addressing what he deemed unfair trade practices. The escalating tariffs are a continuation of this "America First" approach, but experts warn that the economic and geopolitical fallout could be severe.

China, Canada, and Mexico represent the U.S.'s top three sources of imports, and the growing trade tension is likely to have significant repercussions on both the global economy and national security. As Trump moves forward with his tariff strategy, the world watches closely to see how the trade war will unfold and what consequences it will have for American consumers, businesses, and foreign relations.