President Donald Trump on February 1 imposed new tariffs on the nation’s top three trading partners—Canada, Mexico, and China. The President invoked the International Emergency Economic Powers Act, citing a “major threat of illegal aliens and deadly drugs” as justification for the measure.
Under the new policy, 25 percent tariffs will be applied to imports from both Canada and Mexico. An additional 10 percent tariff will be imposed on Canadian energy resources and all imports from China.
White House officials say these measures will remain in place “until these countries cooperate with the U.S. to address drug trafficking and border security.”
President Trump shared his perspective on Truth Social. He pointed to his duty to protect the American people from the dangers of fentanyl and other illicit substances, which he says are largely trafficked by Mexican cartels and facilitated by lax border controls:
“This was done through the International Emergency Economic Powers Act because of the major threat of illegal aliens and deadly drugs killing our Citizens, including fentanyl.”
The White House also released statements pointing to China’s role in funneling key chemicals to drug cartels, which are then used to manufacture fentanyl and other opioids.
Officials say these chemicals often find their way into the United States, resulting in thousands of overdose deaths each year.
While President Trump contends the tariffs will bring in significant revenue—possibly up to $450 billion a year according to investor John Paulson—economists warn the measure could lead to higher consumer prices.
Businesses typically pass on tariff-related costs to consumers, thereby increasing inflationary pressures.
The credit-rating agency S&P Global projects Trump’s proposed tariffs could boost inflation by around 1.8% and lower U.S. economic output by 1%.
In a similar vein, the Tax Foundation estimates households may face an average $830 annual increase if the tariffs remain in place.
Nonetheless, the President argued that “it will all be worth the price that must be paid” to safeguard the nation against “unfair trade terms” and drug-related threats.
Canada, America’s northern neighbor, has been hit with a 25 percent tariff on most goods, alongside a 10 percent tariff specifically targeting energy exports.
Prime Minister Justin Trudeau quickly vowed a “purposeful, forceful but reasonable immediate response.”
“If the president does choose to implement any tariffs against Canada, we’re ready with a response,” Trudeau said, cautioning that his government “won’t relent until tariffs are removed.”
Pierre Poilievre, leader of Canada’s Conservative Party, echoed Trudeau’s concerns, calling for a “dollar-for-dollar” retaliation if the U.S. does not reconsider its stance.
Mexican President Claudia Sheinbaum emphasized a willingness to maintain dialogue with the United States but underscored that fentanyl consumption is also a problem for which the U.S. bears responsibility.
She pointed to Mexico’s recent seizures of illegal drugs as evidence that her country is working to combat cartel activities. While details on Mexico’s response remain scarce, Sheinbaum indicated that her administration has “multiple plans” ready.
Trump’s order includes an extra 10 percent tariff on all imports from China, prompting Beijing’s Ministry of Commerce to announce plans to file a complaint with the World Trade Organization.
U.S. officials allege that the Chinese Communist Party subsidizes chemical companies that export fentanyl ingredients, a charge China disputes.
Many Republicans see the tariffs as a strategic move to pressure Canada, Mexico, and China into tougher crackdowns on drug trafficking and more robust border controls:
“Mexico has a choice,” said Sen. Eric Schmitt (R-Mo.). “They can choose to trade with the United States or continue to cozy up with the cartels.”
Homeland Security Secretary Kristi Noem also defended the move, referring to the tariffs as an “opportunity” for Canada and Mexico to collaborate with the United States against fentanyl trafficking.
Some GOP members, however, caution that “across-the-board” tariffs could harm U.S. industries reliant on cross-border supply chains.
Scheduled to begin on February 4, the tariffs reflect President Trump’s broader vision of making America more self-reliant and safer, even if that means accepting some short-term economic pain.
Trump insists the long-term benefits will outweigh any immediate costs, fulfilling his pledge to secure the nation against illegal drugs and immigration.