Trump's 25% Tariffs on Canada and Mexico Take Effect as Trade Tensions Rise

New tariffs on imports from Canada and Mexico officially took effect today as part of President Trump's effort to use trade policy to combat the flow of fentanyl into the United States. Under the new measures, imports from both neighboring countries will be taxed at 25%, while Canadian energy products face a separate 10% tariff.

The move expands the administration’s aggressive stance on international trade, following last month’s 10% tariff on Chinese imports—now doubled to 20%. In response, China has announced retaliatory measures, including tariffs of up to 15% on certain U.S. goods starting March 10, along with export restrictions targeting 15 U.S. companies.

The tariffs come amid increasing tensions with global trade partners, raising concerns among American businesses and consumers over rising costs. The administration maintains that the policy is necessary to pressure foreign governments to crack down on illicit fentanyl trafficking, which has fueled the opioid crisis in the U.S.

As trade relations strain, economic analysts warn of potential ripple effects, particularly for industries reliant on cross-border supply chains. With China’s retaliation set to take effect soon, all eyes are on whether further escalations will follow.

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