Trump imposes tariffs on Mexico, Canada, China, citing drug flow and immigration issues; retaliatory tariffs initiated by Mexico.

US President Donald Trump has signed an executive order imposing tariffs on imports from Mexico, Canada, and China.

This move aims to fulfil a campaign promise and may lead to higher prices for American consumers.

The tariffs include a 25 per cent duty on imports from Mexico and Canada, with a 10 per cent tariff on all Chinese imports, excluding Canadian energy.

The order is issued under the International Emergency Economic Powers Act and could escalate if these countries retaliate.

Trump cites the need to curb fentanyl trafficking and illegal immigration as reasons for the tariffs.

Canadian Prime Minister Justin Trudeau

Retaliatory strike

In response, Mexico has announced its own tariffs on US imports.

Mexican President Claudia Sheinbaum rejected claims of collaboration with criminal organisations and called for better US action against drug demand.

Meanwhile, Canadian officials, including Prime Minister Justin Trudeau, have vowed to respond to the tariffs.

Concerns have been raised by various trade groups, with warnings that the tariffs will increase consumer prices and disrupt supply chains.

Many economists doubt the effectiveness of tariffs, viewing them as an inefficient means of achieving economic goals.

Importantly, tariffs are typically paid by American companies, leading to higher costs passed on to consumers, potentially exacerbating inflation.

Trump’s administration is also considering more tariffs on additional imports, indicating that tariffs may remain a significant aspect of economic policy.