President Trump on Saturday formally enacted sweeping tariffs on Canada, Mexico and China, fulfilling a long-promised threat to force America’s closest trading partners to pony up.
Canada and Mexico will be hit with a 25% tariff on all imports, while Chinese products will receive a more modest 10% tariff, Bloomberg reported.
The US will also impose 10% tariffs on energy products from Canada.
The three Executive Orders have a retaliation clause that will boost the tariffs should the three countries respond.
The tariffs are in response to the three nation’s tolerance of illegal fentanyl, which has flooded the United States in recent years, leading to the deaths of “tens of millions” of Americans, White House spokeswoman Karoline Leavitt said Friday.
Trump’s trade war on Canada is expected to officially kick in Tuesday by imposing the 25% tariff on nearly all goods from the US’s northern neighbor. The president’s plan also includes a 10% tariff on Canadian energy products, according to CBC News.
Canada, however, was expected to hit back later Saturday with Prime Minister Justin Trudeau announcing retaliatory tariffs against America, its biggest customer for trade, the outlet reported.
It was unclear Saturday when the United States will begin imposing tariffs on Mexico and China.
Trump has long been a fan of taxing imports from other nations as a way to correct trade imbalances, raise revenues and be used as leverage for unrelated policy battles.
Earlier this month when Colombia initially refused to accept a plane load of their citizens in the United States illegally, Trump vowed to implement tariffs as high as 50% — a move that would likely have sent the small Colombia nation into depression.
Colombia’s President Gustavo Petro immediately buckled under pressure and even offered his presidential plane to assist in the deportations.
The tariffs could mean significant price increases for ordinary Americans on everyday products.
Cars and car parts
In 2024, the United States imported more than $100 billion worth of cars and vehicle parts from Mexico, with another $34 billion coming from Canada.
Trump’s tariffs will likely lead to more expensive cars at least in the short term before American suppliers can ramp up to fill the shortfall.
Food and Alcohol
Your margaritas and sipping tequilas will also likely take a nasty bump.
In 2024, the United States imported $46 billion of agricultural products from Mexico, according to U.S. Department of Agriculture. Of that figure, fresh fruits totaled $9 billion, and cost for fruit will likely become more expensive at grocery stores across the country when the tariffs kick in.
Consumer electronics
The tariffs could also reduce consumer spending power by $90 billion on smartphones, TVs, laptops and tablets, video game consoles, headphones and other popular electronics, according to the Consumer Technology Association.
Laptops and tablets could see 45% price increases while similar double-digit increases for smartphones and video games could also be on the offing.
“The likelihood of retailers or any importer absorbing the tariff cost is very low, so the pass through to consumers will be quick,” Ed Brzytwa, vice president of international trade at CTA told CBS News “On all the products we looked at, there are going to be price increases.”
The Peterson Institute has estimated Trump’s proposed tariffs would cost the typical US household over $2,600 a year.
