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Trump Begins “Trade War” with Mexico, Canada, and China

US imposes 25% tariffs on Mexican and Canadian goods (except oil) and 10% on Chinese products

The President of the United States, Donald Trump.

The President of the United States, Donald Trump, signs an executive order at the White House on January 31, 2025. // Photo: EFE/Yuri Gripas/Pool

Agencia EFE

3 de febrero 2025

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The President of the United States, Donald Trump, signed executive orders that immediately enforce his promised tariffs of 25% on goods from Mexico and Canada—except for Canadian oil, which will only have a 10% tariff—and 10% on Chinese goods, on top of existing tariffs.

Trump signed three separate executive orders from his private residence at Mar-a-Lago in Florida on the afternoon of Saturday, February 1, 2025, thereby fulfilling a repeatedly announced promise that could spark a trade war.

The tariffs will officially take effect at 12:01 AM on Tuesday, February 4, 2025. Trump accuses Mexico and Canada of failing to control their borders regarding migration flows and drug trafficking, particularly fentanyl, as well as benefiting from a trade surplus with the US. The unilateral tariffs pose a direct challenge to the North American free trade agreement, which has been in place for 30 years.

Shortly after the signing was made public, the White House stated that the tariffs on Canada will remain in place “until Canada cooperates with the US against drug traffickers and in border security,” a stance it also took with Mexico but with harsher accusations.


“Mexican cartels are the world’s leaders in trafficking fentanyl, methamphetamine, and other drugs. These cartels have an alliance with the Mexican government and endanger the national security and public health of the United States,” Trump stated.

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Mexico Downplays the Tariffs

Mexican President Claudia Sheinbaum stated before Trump’s signing that the imposition of tariffs does not concern her because “Mexico’s economy is very strong and solid,” despite the fact that exports to the US accounted for nearly 30% of Mexico’s GDP in 2023, according to a report by the Mexican Institute for Competitiveness.

Before the Trump announcement, Sheinbaum revealed she has “a Plan A, a Plan B, and a Plan C” for when and if the tariffs would take effect. After Trump initiated the trade war on Saturday, she said retaliatory tariffs were being considered. Trump has already warned that if retaliation occurs, he will increase the tariff rates further.

As for Canada, Prime Minister Justin Trudeau announced Canada’s response in a press conference later on Saturday, including retaliatory tariffs on US exports.

On Friday, the Canadian leader had warned that the country has prepared “an immediate, determined, strong, but reasonable response” to the US tariffs.

This article was originally published in Spanish by Confidencial and translated by Havana Times. To get the most relevant news from our English coverage delivered straight to your inbox, subscribe to The Dispatch.

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Agencia EFE

Agencia EFE

Agencia de noticias internacional con sede en Madrid, España. Fundada en Burgos durante la guerra civil española en enero de 1939.

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