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Trade War

Trump slaps tarrifs on Mexico, Canada, and China, they retaliate in kind

The administration's new tariffs aim to curb illegal immigration and drug flows but may cause widespread economic disruption.

Donald Trump
Photo: Shutterstock

President Donald Trump announced sweeping new tariffs on Mexico, Canada, and China during a signing ceremony at his Mar-a-Lago estate on Saturday.

The tariffs, which target trade between the U.S. and its neighbors as well as China, aim to reduce the flow of illegal drugs and undocumented immigrants into the U.S. However, these measures threaten to drive up prices for American consumers on everyday goods, including avocados, sneakers, and cars.

In response, Mexico’s President Claudia Sheinbaum confirmed her country would impose retaliatory tariffs, while Canadian Prime Minister Justin Trudeau vowed to introduce "far-reaching" levies. Meanwhile, China's commerce ministry warned it would file a complaint with the World Trade Organization and take unspecified countermeasures.

The imposition of these tariffs, coupled with the retaliatory actions, risks sparking a full-blown trade war, potentially hurting the economies of the U.S. and its trading partners. Trump's executive order includes a provision that allows him to expand tariffs if any country imposes new taxes on U.S. goods.

This move marks a dramatic shift from the long-standing duty-free trade between the U.S. and its North American allies and further intensifies the ongoing trade conflict with China. As promised, the tariffs impose a 25% duty on most imports from Mexico and Canada, and a 10% tariff on Chinese goods.

CNN contributed to this article.

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