LAST UPDATE | 4 Mar 2025

DONALD TRUMP’S PROMISED tariffs against Canada and Mexico have come into effect today while the US also doubled the tariffs already in place on Chinese imports.

Imports from Canada and Mexico are now to be taxed at 25%, apart from Canadian energy products, which will have a 10% tariff applied.

Additionally, the 10% tariff that Trump placed on Chinese imports in February has been doubled to 20%.

In response, Canadian Prime Minister Justin Trudeau said his country would apply tariffs on more than 100 billion dollars of American goods over the course of 21 days.

“Canada will not let this unjustified decision go unanswered,” Trudeau said. 

China has condemned the “unilateral imposition of tariffs by the US” and swiftly retaliated, saying it would impose 10 and 15 percent levies on a range of agricultural imports from the United States.

Canadian Prime Minister Justin Trudeau talks with Ukraine's President Volodymyr Zelenskyy in London last Sunday Alamy Stock Photo Alamy Stock Photo

“If the United States… persists in waging a tariff war, a trade war, or any other kind of war, the Chinese side will fight them to the bitter end,” China’s foreign ministry spokesman Lin Jian said.

Mexico did not immediately detail any retaliatory measures. Mexican President Claudia Sheinbaum has said her country has contingency plans.

The imposition of tariffs on its neighbours and its largest trading partner have sparked fears of inflation in the United States, and global economic uncertainty. The sweeping duties, particularly on Canada and Mexico, are likely to upset supply chains for key sectors like automobiles and construction materials.

Asian markets already reacted negatively when they opened this morning. 

But Trump has shown a willingness to buck the warnings of mainstream economists and put his own public approval on the line, believing that tariffs can fix what ails the country.

“It’s a very powerful weapon that politicians haven’t used because they were either dishonest, stupid or paid off in some other form,” Trump said on Monday at the White House.

“And now we’re using them.”

Mexico president Claudia Sheinbaum Marco Ugarte / AP Marco Ugarte / AP / AP

The Canada and Mexico tariffs were originally supposed to begin in February, but Trump agreed to a 30-day suspension to negotiate further with the two largest US trading partners.

The stated reason for the tariffs is to address drug trafficking and illegal immigration, and both countries had managed to appease Trump on those fronts. But Trump has also said the tariffs will only come down if the US trade imbalance closes.

With reporting from Press Association and AFP