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Published 06:56 IST, February 2nd 2025

'We Need to Protect Americans': Trump Imposes Tariffs on China, Canada, and Mexico

The Trump administration slapped Canada and Mexico with 25% tariffs on imported goods and taxed China with a 10% duty on its exports.

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'We Need to Protect Americans': Trump Imposes Tariffs on China, Canada, and Mexico
'We Need to Protect Americans': Trump Imposes Tariffs on China, Canada, and Mexico | Image: Republic

Washington: United States President Donald Trump imposes steep tariffs on China, Canada, and Mexico on Saturday, citing threats to Americans. The Trump administration slapped Canada and Mexico with 25% tariffs on imported goods and taxed China with a 10% duty on its exports.  

Trump signed the order on Saturday, fulfilling one of the promises he made during his election campaign. He announced the decision in a Truth Social post, citing threats from illegal migrants and drugs.

Trump Justifies Tariffs, Calls It a 'Promise to Americans'  

Announcing the decision on his Truth Social platform, Trump wrote:  

"Today, I have implemented a 25% tariff on imports from Mexico and Canada (10% on Canadian energy), and a 10% additional tariff on China. This was done through the International Emergency Economic Powers Act (IEEPA) because of the major threat of illegal aliens and deadly drugs killing our citizens, including fentanyl. 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.”  

Trump Declares Economic Emergency

To enforce these tariffs, Trump declared an economic emergency, invoking special powers under US trade laws. He had previously warned about taking such action during his first term, stating that he would declare a "National Emergency" at the southern border of Mexico to stop illegal migrants from entering the US.  

The tariffs would go into effect on Tuesday, setting a showdown in North America that could potentially sabotage economic growth. A new analysis by the Budget Lab at Yale laid out the possible damage to the US economy, saying the average U.S. household would lose the equivalent of USD 1,170 in income from the taxes. Economic growth would slow and inflation would worsen — and the situation could be worse if Canada, Mexico and China retaliate, as per Associated Press. 

For the moment, Mexico plans to stay cool-headed as it weighs its options.

Mexico President Claudia Sheinbaum, appearing Saturday at an event promoting a government housing program outside Mexico City said, “I'm calm, I've been saying since yesterday, because I know that Mexico's economy is very powerful, very strong.” A senior administration official, insisting on anonymity to brief reporters, said the lower rate on energy reflected a desire to minimize any disruptive increases on the price of gasoline or utilities. That's a sign White House officials understand the gamble they're taking on inflation. Price spikes under former President Joe Biden led to voter frustration that helped to return Trump to the White House last year.

The order signed by Trump contained no mechanism for granting exceptions, the official said, a possible blow to homebuilders who rely on Canadian lumber as well as farmers, automakers and other industries.

The Trump administration put the tariffs in place to force the three countries to stop the spread and manufacturing of fentanyl, in addition to pressuring Canada and Mexico to limit any illegal immigration into the United States.

Updated 12:57 IST, February 2nd 2025