Feb. 1 (UPI) — The Trump administration is following through on its promise to impose 25% tariffs on certain goods imported from Mexico and Canada, and 10% on Chinese items on Saturday, all linked to the fentanyl crisis.
The Trump administration on Friday announced the tariffs would take effect Saturday. He signed the executive order at his Mar-a-Lago resort in Florida on Saturday.
If Mexico, China or Canada respond with “likely increased tariffs” on U.S. goods, the U.S. officials would apply a corresponding increase to tariffs on each nation’s respective exports to the United States.
“President Donald Trump is taking decisive action to protect Americans from the fentanyl crisis,” the White House said Saturday in a in a series of posts on X.
The White House said fentanyl is the leading cause of death for Americans between ages 18 and 45.
“Today’s tariff announcement is necessary to hold China, Mexico and Canada accountable for their promises to halt the flood of poisonous drugs into the United States,” the White House post said.
Canada also is subject to a 10% tariff on energy exports to the United States.
“The 10% rate on energy will minimize any disruptive effects we might have on gasoline and home heating oil prices,” Peter Navarro, Trump’s trade adviser, said Saturday in a call with reporters.
In the United States, tariffs are collected by Customs and Border Protection agents at 328 ports of entry across the country.
The National Retail Federation estimated up to $7,600 in additional costs per U.S. household annually if Trump’s tariffs are imposed.
Trade with border countries
The three nations are the United States’ largest trade partners, but Trump earlier threatened to impose tariffs if leaders in those nations did not do more to curb the flow of fentanyl and illegal migrants into the United States.
“Thousands of people are pouring through Mexico and Canada, bringing crime and drugs at levels never seen before,” Trump said in a Truth Social post on Nov. 25.
The White Housed noted Mexican cartels are the world’s leading traffickers of fentanyl, meth and other drugs.
“Mexico and Canada have the absolute right and power to easily solve this long-simmering problem,” Trump said. “We hereby demand that they use this power, and until such time that they do, it is time for them to pay a very big price!”
The tariffs could have a significant impact on the cost goods sold in America. That includes vehicle parts and food imported from Mexico.
Mexico is the nation’s largest trade partner with $466.6 billion in goods exported to the United States in 2024, NBC News reported.
That includes $46 billion of agricultural products from Mexico, according to U.S. Department of Agriculture data. Fresh fruits accounted for $9 billion worth, including $3.1 billion worth of avocados.
China exported $401.4 billion and Canada $377.2 billion in 2024. By comparison, Germany ranked fourth in U.S. trade with $146.7 billion in goods exported to the United States.
About 80% of the toys imported to the United States come from China.
The White House said: “China plays the central role in the fentanyl crisis that is destroying American lives.”
Reaction to tariffs
U.S. Senate minority leader Chuck Schumer blasted the orders.
“It would be nice if Donald Trump could start focusing on getting the prices down instead of making them go up,” he said.
Jonathan Wilkinson, who is Canada’s energy and natural resources minister, also responded immediately on X:
“Canada has done nothing to provoke tariffs. But I want to reassure each and every Canadian: no matter who you are or where you live, we are prepared and ready to fight for you. We will always be your champions.”
Canadian Prime Minister Justin Trudeau on Friday said his nation will bring a “forceful but reasonable” retaliation to any tariffs imposed by the the United States.
“I won’t sugarcoat it – our nation could be facing difficult times in the coming days and weeks,” Trudeau said on Friday while speaking to an advisory council on Canada-U.S. relations. “I know Canadians might be anxious and worried, but I want them to know the federal government – and indeed, all orders of government – have their backs.”
Mexican President Claudia Sheinbaum said Friday they have a “Plan A, Plan B, Plan C for what the United States government decides.” Mexico has conferred with Trump’s team since before he returned to the White House.
Douglas Porter, chief economist at BMO Capital Markets, said “there’s no positive outcome; there’s just differences in degree of who loses.”
Port said research and economics show producers and consumers ultimately pay more in the end.
The White House disputed that logic Saturday, blasting “the Fake media.”
“A 2024 study on the effects of President Trump’s tariffs during his first administration found that they ‘strengthened the U.S. economy” and “led to significant reshoring” in industries like manufacturing and steel production. Even former Biden Treasury Secretary Janet Yellen affirmed last year that tariffs do not harm consumers.”
White House addresses crises
The tariffs are part of Trump’s “America first” trade policy that seeks to balance the amount of trade with other nations while greatly reducing or limiting the flow of migrants, fentanyl and other drugs into the United States.
An average of 80,000 lives are lost every year in North America due to overdoses caused by opioids, such as fentanyl.
Fentanyl is a synthetic drug that is more than 50 times more potent than heroine and 100 times more potent than morphine.
U.S. border agents seized 21,000 pounds of fentanyl at the nation’s southern border and 43 pounds at its northern border from October2023 through September.
