Mexican President Claudia Sheinbaum said on Saturday she ordered her economy minister to implement tariff and non-tariff measures to defend her country's interests, after the U.S. slapped across-the-board duties on goods coming from Mexico. Trump said the tariffs against Mexico were due to the country's failure to stop fentanyl getting into the United States as well as what he describes as uncontrolled migration.
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In a lengthy post on X, Sheinbaum stressed that her government does not seek confrontation with its northern neighbour but rather collaboration and dialogue. The Leftist leader, who has repeatedly sought to calm tensions with U.S. President Donald Trump, touted her government's record since she took office in October, seizing 20 million doses of deadly synthetic opioid fentanyl, in addition to detaining over 10,0000 individuals tied to drug trafficking.
“We need to protect Americans, and it is my duty as President to ensure the safety of all. I made a promise on my Campaign to stop the flood of illegal aliens and drugs from pouring across our Borders, and Americans overwhelmingly voted in favor of it.” –President Trump pic.twitter.com/rJ9opLBJzr
— The White House (@WhiteHouse) February 1, 2025
U.S. President Donald Trump on Saturday ordered 25% tariffs on Canadian and Mexican imports and 10% on goods from China starting on Tuesday, risking a new trade war that economists say could slow global growth and reignite inflation. Trump signed three separate executive orders on the tariffs after a long golf outing in Florida, vowing to keep the duties in place until what he described the national emergency over the drug fentanyl and illegal immigration to the U.S. ends.
Quoting White House officials, Reuters said there would be no exclusions from the tariffs and if Canada, Mexico or China retaliated against American exports, Trump would likely increase the U.S. duties. They reportedly added that Canada specifically, would no longer be allowed the "de minimis" U.S. duty exemption for small shipments under $800. The officials said Canada, along with Mexico, has become a conduit for shipments of fentanyl and its precursor chemicals, into the U.S., via small packages that are not often inspected by customs agents.
Responding to concerns raised by oil refiners and Midwestern states, Trump imposed only a 10% duty on energy products from Canada, with Mexican energy imports facing the full 25% tariff. At nearly $100 billion in 2023, imports of crude oil accounted for roughly a quarter of all U.S. imports from Canada, according to U.S. Census Bureau data.
Republicans welcomed the news, while industry groups and Democrats issued stark warnings about the impact on prices.National Foreign Trade Council (NFTC) President Jake Colvin said Trump's move threatened to raise the costs of "everything from avocados to automobiles" and urged the U.S., Canada and Mexico to find a quick solution to avoid escalation.
— Donald J. Trump (@realDonaldTrump) February 1, 2025
"Our focus should be on working together with Canada and Mexico to gain a competitive advantage and facilitate American companies' ability to export to global markets," Colvin said in a statement. Provincial officials and business executives in Canada reacted with outrage, calling for forceful tariffs on imports from the U.S., while senior Mexican and Canadian officials said their countries would respond with retaliatory tariffs.
Trump declared the national emergency under the International Emergency Economic Powers Act and the National Emergencies Act to back the tariffs, which allow the president sweeping powers to impose sanctions to address crises. Trade lawyers said Trump was once again testing the limits of U.S. law, and said the two statutes were untested for broad tariffs. Legal challenges were likely, some said.
What Donald Trump siad about the tariffs
Trump spoke extensively about the tariffs on Friday, acknowledging they could lead to disruptions and hardships for Americans, but was not scheduled to speak to reporters about the tariffs. He said he was using the tariffs to crack down on the flow of the opiate fentanyl and precursor chemicals into the U.S. from China via Mexico and Canada, as well as to stop illegal immigrants crossing U.S. borders.
The move was led by Deputy Chief of Staff Stephen Miller, a forceful hawk on illegal immigration, and Trump's nominee to head the Commerce Department, Howard Lutnick, who flew to Florida with Trump on Friday.
