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By Jordan King
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Canada and Mexico have announced tariffs on the U.S. in retaliation for President Donald Trump's sweeping duties on imports from his country's neighbors—here is what we know about them so far.
Why It Matters
Trump declared an economic emergency on Saturday in order to place a 25-percent tariff on all imports from Mexico and Canada and a 10-percent tariff on those from China. He also added a 10-percent duty on energy imported from Canada.
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He says the measures are part of a crackdown on fentanyl and illegal immigration.
Canada's Response
Both Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum announced counter-tariffs on Saturday.
Trudeau announced a 25-percent tariff on 155 billion Canadian dollars' worth ($106 billion) of U.S. goods. Some $30 billion Canadian dollars' worth of American alcohol and fruit will be impacted first, with these duties taking effect from Tuesday, when U.S. tariffs kick in. Duties on the remaining 125 billion Canadian dollars will then take effect within 21 days.
He said in his speech on Saturday that Canadian tariffs would include "everyday items such as American beer, wine and bourbon, fruits and fruit juices, including orange juice, along with vegetables, perfume, clothing and shoes."
Duties will also include "major consumer products like household appliances, furniture and sports equipment, and materials like lumber and plastics."
Trudeau added that, along with provinces and territories, the Canadian government was considering "non-tariff measures," including "some relating to critical minerals, energy procurement and other partnerships."
Tim Houston, premier of the Canadian province Nova Scotia, released a statement on the move, saying: "It's remarkable to find ourselves at odds with our best friends."
He announced that the Cobequid Pass, a toll highway in Nova Scotia, would charge commercial vehicles from the U.S. double from Monday onward.
Houston also said the province would "limit access to provincial procurement for American businesses," "look for opportunities to cancel existing contracts" and "maintain the option to reject bids outright because of President Trump's unlawful tariffs."
On top of this, the alcohol firm Nova Scotia Liquor Corporation has been directed to remove all its alcohol from U.S. shelves from Tuesday.
Trudeau's Speech
Trudeau spoke to the media on Saturday, appealing to the American people as Canada's "closest friends and allies."
"This is a choice that, yes, will harm Canadians," he said. "But beyond that, it will have real consequences for you, the American people."
He went on: "As I have consistently said, tariffs against Canada will put your jobs at risk, potentially shutting down American auto assembly plants and other manufacturing facilities.
"They will raise costs for you, including food at the grocery stores and gas at the pump.
"They will impede your access to an affordable supply of vital goods crucial for U.S. security, such as nickel, potash, uranium, steel and aluminum.
"They will violate the free trade agreement that the president and I, along with our Mexican partner, negotiated and signed a few years ago. But it doesn't have to be this way."
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Mexico's Response
In a post on X, Sheinbaum addressed Trump's reasoning for American tariffs, saying, "Mexico categorically rejects the White House's slander against the Mexican government of having alliances with criminal organizations, as well as any intention of intervention in our territory."
She ended by announcing that she had instructed the "secretary of economy to implement Plan B that we have been working on, which includes tariff and non-tariff measures in defense of Mexico's interests."
Mexico has been preparing possible retaliatory measures on American imports, ranging from 5 percent to 20 percent on pork, cheese, fresh produce, manufactured steel and aluminum with the auto industry exempt, Reuters reported, citing "sources familiar with the matter."
In 2023, U.S. exports to Mexico accounted for more than $322 billion, Census Bureau data shows.
Sheinbaum said: "Mexico does not want confrontation. We start with collaboration between neighboring countries. Mexico not only does not want fentanyl to reach the United States, but anywhere. Therefore, if the United States wants to combat criminal groups that traffic drugs and generate violence, we must work together in an integrated manner, but always under the principles of shared responsibility, mutual trust, collaboration and, above all, respect for sovereignty, which is not negotiable.
"Coordination, yes; subordination, no. To this end, I propose to President Trump that we establish a working group with our best public health and security teams. Problems are not resolved by imposing tariffs, but by talking and dialoguing, as we did in recent weeks with your State Department to address the phenomenon of migration; in our case, with respect for human rights."
What People Are Saying
Trump on his Truth Social platform: "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."
Kimberly Clausing, an economist and a professor at the UCLA School of Law, previously told Newsweek: "Even very high tariffs could only replace a minority of the revenue raised by income taxation, and such high tariffs would cripple the economy."
What Happens Next
American tariffs begin on Tuesday, along with some Canadian ones, before the rest of Canada's kick in 21 days later. It is not yet clear when Mexico's tariffs will be applied.
The economic and socioeconomic consequences of these actions are yet to be seen.
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