Canada, Mexico, China and the EU respond to Trump’s tariffs

U.S. President Donald Trump on Saturday imposed long-threatened tariffs on imports from Canada, Mexico and China — and it didn’t take long for the countries to respond.

Trump signed an order slapping 25% tariffs on goods from Mexico and Canada, and a 10% duty on Chinese imports, due to start on Tuesday. Energy resources from Canada face a lower, 10% tariff to “minimize any disruptive effects we might have on gasoline and home heating oil prices,” according to a senior administration official.

In the executive order, Trump said that if the countries — the U.S.’s three-largest trading partners — retaliate, it could be met with an “increase or expand in scope” of the duties already imposed.

In a post on X, Trump said the duties had been imposed “because of the major threat of illegal aliens and deadly drugs killing our Citizens, including fentanyl.”

The U.S. does about $1.6 trillion in business each year with Canada, Mexico and China. The tariffs are expected to be used as both bargaining chips and methods to effect foreign policy changes — specifically regarding immigration and drug trade issues — by the Trump administration.

Reaction from one of the three countries was swift and decisive, while the others appeared to take more of a wait-and-see approach to Trump’s tariffs. The European Union is also watching how the newly imposed tariffs will play out, after Trump recently took aim at the EU for what he claims is an unequal trade relationship. Here is a look at their responses.

Retaliatory tariffs are expected to further exacerbate price hikes in both the U.S. and elsewhere. The price of everything from cars and electronics to toys and food is expected to be impacted.

Trudeau added that “it doesn’t have to be this way.”

“Yes, we’ve had our differences in the past, but we’ve always found a way to get past them. As I’ve said before, if President Trump wants to usher in a new golden age for the United States, the better path is to partner with Canada, not to punish us,” he said.

Meanwhile, Ontario said it will pull all American alcohol products from its government-run liquor shelves beginning Tuesday in response to the tariffs. Outlets of the Liquor Control Board of Ontario will also take U.S. products out of its catalog so other retailers can’t order or restock those items, according to a Sunday statement by Premier Doug Ford.

In a long post on X, the president added: “We categorically reject the White House’s slander of the Government of Mexico alleging alliances with criminal organizations, as well as any intention to interfere in our territory.”

“Mexico does not want confrontation. We start from the collaboration between neighboring countries,” she said in the post, translated by NBC. “Mexico not only does not want fentanyl to reach the United States, it does not want it to reach anywhere.”

“We must work together in a comprehensive manner, but always under the principles of shared responsibility, mutual trust, collaboration and above all, respect for sovereignty, which is non-negotiable. Coordination, yes; subordination, no,” she added.

“In response to this wrongful action, China will file a lawsuit with the WTO and take necessary countermeasures to firmly safeguard its rights and interests.” China has complained to the WTO over tariffs before, notably regarding the EU’s tariffs on Chinese EVs last year.  

The fact that China stopped short of immediate escalation has raised hopes that there could be some room to avoid an all-out trade war between the two countries. The lower, 10%-tariffs imposed on Chinese-made goods may also be a relief given repeated threats made by Trump on the campaign trail to impose duties of 60% or more on imports from the country.

In its statement, China pushed back on Trump’s comments about fentanyl, describing it as a “domestic issue.”

“China urges the U.S. to take an objective and rational approach to its domestic issues, including fentanyl, rather than resorting to tariff threats against other countries,” it said.

Synthetic opioid fentanyl is an addictive drug that causes many thousands of overdose deaths each year in the U.S. The chemicals needed to make the drug are mostly produced in China and Mexico. Washington and Beijing had previously agreed to cooperate on the issue.

Trump has made no secret of his opinion that the U.S. and the EU have what he has claimed is an unequal trade relationship.

“From the standpoint of America, the EU treats us very, very unfairly, very badly,” Trump said in a virtual address to the World Economic Forum in Davos, Switzerland, this month.

The EU is not currently aware of any additional tariffs being placed on its products, the spokesperson said.

“Our trade and investment relationship with the U.S. is the biggest in the world. There is a lot at stake,” the spokesperson said. “Across-the-board tariff measures raise business costs, harm workers and consumers. Tariffs create unnecessary economic disruption and drive inflation. They are hurtful to all sides.”

Trump has previously vowed to place tariffs on the EU, with his latest statement on Friday adding that he would “absolutely” do so. Tensions between Trump and the EU were already high after the president made a proposal to buy Greenland.