Donald Trump imposes tariffs on China, Canada and Mexico; White House says ‘no exclusions’

1. Donald Trump imposes tariffs on China, Canada and Mexico; White House says ‘no exclusions’

Donald Trump imposes tariffs on China, Canada and Mexico; White House says ‘no exclusions’ ByHT News Desk Feb 02, 2025 04:29 AM IST Share Via Copy Link Donald Trump said he is implementing his campaign promise to stop the flood of illegal aliens and drugs from pouring across US borders.

US President Donald Trump imposed a 25% tariff on Canadian and Mexican imports and a 10% on goods from China to address a “national emergency” over illegal immigration and fentanyl, White House officials said.

US President Donald Trump signed an executive order to impose tariffs on imports from Canada, China and Mexico.(AFP)

Trump had been threatening the tariffs to ensure greater cooperation from the neighbouring countries to stop “illegal immigration” and the smuggling of chemicals used for fentanyl. The US president has also pledged to use tariffs to boost domestic manufacturing and raise revenues for the federal government.

“Today, I have implemented a 25% Tariff on Imports from Mexico and Canada (10% on Canadian Energy), and a 10% additional Tariff on China. This was done through the International Emergency Economic Powers Act (IEEPA) because of the major threat of illegal aliens and deadly drugs killing our Citizens, including fentanyl. We need to protect Americans, and it is my duty as President to ensure the safety of all. I made a promise on my Campaign to stop the flood of illegal aliens and drugs from pouring across our Borders, and Americans overwhelmingly voted in favor of it,” Trump said in a post on his Truth Social platform.

The Republican president has declared a “national emergency” under the International Emergency Economic Powers Act to back his move legally. This allows the US president to assume sweeping powers to address the crises.

The order appeared to spare Canada's energy exports to the US by imposing a 10% duty, compared to full 25% charged on Mexican energy imports.

White House officials said there would be “no exemptions” from the tariffs. The order also cancelled the “de minimis” clause that exempted tariffs on smaller shipments valued under $800 from Canada.

According to Trump's order, the tariffs will be implemented on Tuesday at 12:01 a.m. EST (05:01 GMT). Goods under transit and those entering the US border before the cut-off time will be exempt from duties.

The White House said the tariffs would be implemented “until the crisis is alleviated”. However, the officials did not provide details on actions the three countries are expected to take to get an exemption from Trump's tariff orders.

Reuters cited EY Chief Economist Greg Daco saying that the tariffs would reduce US economic growth by 1.5% this year and push Canada and Mexico into a recession.

“We have stressed that steep tariff increases against U.S. trading partners could create a stagflationary shock - a negative economic hit combined with an inflationary impulse - while also triggering financial market volatility,” Daco said.