Trump tariffs latest: China to file lawsuit for 'wrongful practices of US'
Canada, Mexico order retaliatory tariffs on the U.S.
Canadian Prime Minister Justin Trudeau announced Saturday evening a 25 percent tariff on $150 billion of American goods in response to Trump. "This will include immediate tariffs on $30 billion worth of goods as of Tuesday, followed by further tariffs on $125 billion worth of American products in 21 days' time," said Trudeau.
As expected, Canada, Mexico and China have announced swift retaliations to President Donald Trump’s steep tariffs on imports from the three countries.
Trump argues the tariffs are necessary to "protect Americans" and to push the countries to curb the manufacture and export of fentanyl and to reduce illegal immigration. But for our North American neighbors, the move sparked an undeniable sense of betrayal.
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What’s the latest with Trump’s tariffs?
What we know:
Trump declared an economic emergency in order to place duties of 10% on all imports from China and 25% on imports from Mexico and Canada. Energy imported from Canada, including oil, natural gas and electricity, would be taxed at a 10% rate. Trump’s order includes a mechanism to escalate the rates charged by the U.S. against retaliation by the other countries, raising the specter of an even more severe economic disruption.
U.S. President Donald Trump talks to reporters after signing an executive order, "Unleashing prosperity through deregulation," in the Oval Office on January 31, 2025 in Washington, DC. (Photo by Chip Somodevilla/Getty Images)
The tariffs will go into effect on Tuesday, setting up a showdown in North America that could potentially sabotage economic growth.
What we don't know:
It’s not clear how long the tariffs will last, as there are no specific benchmarks that could be met to lift the new tariffs. An official told the Associated Press that the best measure would be fewer Americans dying from fentanyl addiction.
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How has China responded to the tariffs?
What they're saying:
China’s Ministry of Foreign Affairs said the country's government "firmly deplores and opposes this move and will take necessary countermeasures to defend its legitimate rights and interests."
China began regulating fentanyl-related drugs as a class of controlled substances in 2019 and conducted "counternarcotics cooperation with the U.S.," the ministry said, calling on the U.S. government to correct what it considers wrongful actions.
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The Ministry of Commerce in China said it would file a lawsuit with the World Trade Organization for the "wrongful practices of the U.S." and take measures to safeguard its rights and interests.
How has Canada responded to Trump’s tariffs?
What they're saying:
"The actions taken today by the White House split us apart instead of bringing us together," Canadian Prime Minister Justin Trudeau said in a somber tone as he announced that his country would put matching 25% tariffs on up to $155 billion in U.S. imports, including alcohol and fruit.
He channeled the betrayal that many Canadians are feeling, reminding Americans that Canadian troops fought alongside them in Afghanistan and helped respond to myriad crises from wildfires in California to Hurricane Katrina.
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"We were always there standing with you, grieving with you, the American people," he said.
Trudeau warned of economic pain as the tariffs take effect and encouraged Canadians to "choose Canadian products and services rather than American ones." But he also voiced optimism in the enduring relationship between the two countries.
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"It is going to have real consequences for people, for workers on both sides of our border. We don’t want to be here. We didn’t ask for this, but we will not back down in standing up both for Canadians and for the incredible successful relationship between Canada and the United States," Trudeau said.
The premier of the Canadian province of British Columbia, David Eby, specifically called on residents to stop buying liquor from U.S. "red" states and said it was removing American alcohol brands from government store shelves as a response to the tariffs.
How has Mexico responded to Trump’s tariffs?
What they're saying:
Mexico’s president also ordered retaliatory tariffs.
"We categorically reject the White House’s slander that the Mexican government has alliances with criminal organizations, as well as any intention of meddling in our territory," Mexican President Claudia Sheinbaum wrote in a post on X while saying she had instructed her economy secretary to implement a response that includes retaliatory tariffs and other measures in defense of Mexico’s interests.
"If the United States government and its agencies wanted to address the serious fentanyl consumption in their country, they could fight the sale of drugs on the streets of their major cities, which they don’t do and the laundering of money that this illegal activity generates that has done so much harm to its population."
Are there exceptions to the tariffs?
Dig deeper:
The order signed by Trump contained no mechanism for granting exceptions, a possible blow to homebuilders who rely on Canadian lumber as well as farmers, automakers and other industries.
A senior U.S. administration official said the lower rate on energy reflected a desire to minimize disruptive increases on the price of gasoline or utilities. That's a sign White House officials understand the gamble they're taking on inflation.
What do experts say?
The other side:
A new analysis by the Budget Lab at Yale laid out the possible damage to the U.S. economy, saying the average household would lose the equivalent of $1,170 in income from the taxes. Economic growth would slow and inflation would worsen, and the situation could be even worse with retaliation from other countries.
"It doesn’t make much economic sense,’’ said William Reinsch, senior adviser at the Center for Strategic and International Studies and a former U.S. trade official. "Historically, most of our tariffs on raw materials have been low because we want to get cheaper materials so our manufacturers will be competitive ... Now, what’s he talking about? He’s talking about tariffs on raw materials. I don’t get the economics of it.’’
The Source: This report includes information from the Associated Press.