Trump Imposes 25% Tariffs on Canada and Mexico

U.S. President Donald Trump has confirmed that a 25% tariff on goods imported from Canada and Mexico will take effect starting Tuesday, after negotiations failed to reach a deal. 

A 10% tariff on Chinese imports will also be enforced, affecting three of America’s largest trade partners. The announcement caused a sharp drop in U.S. stock markets, with the Dow Jones falling by 1.4%, the S&P 500 dropping 1.75%, and the Nasdaq sinking 2.6%.

Canadian Prime Minister Justin Trudeau condemned the decision, calling it "unjustified" and vowing to respond with countermeasures. Canadian Foreign Minister Mélanie Joly stated that Canada would impose tariffs on U.S. imports worth C$155 billion ($107 billion), with an initial C$30 billion targeting goods such as pasta, clothing, and perfume. Mexico also announced plans for retaliatory tariffs, increasing concerns about a trade war.

China’s Ministry of Commerce strongly criticized the U.S. tariffs, accusing the Trump administration of "bullying" and vowing to respond by targeting American agricultural and food products. In a statement, the ministry urged the U.S. to withdraw the tariffs, calling them "unreasonable and harmful."

Defending the move, President Trump stated that tariffs are necessary to address illegal immigration and drug trafficking. He urged companies to shift production to the U.S., saying, "If they build their plants here, they won’t have to face tariffs."

The tariffs on Canada and Mexico were initially delayed by a month for negotiations, but with no agreement reached, they will now be implemented. Trump has also announced a 25% tariff on steel and aluminum imports, set to take effect on March 12, and has threatened to impose tariffs on the European Union.

With tensions rising, businesses and global markets remain on high alert for potential economic consequences.