WASHINGTON — On Saturday, President Donald Trump signed three executive orders that impose a 25% tariff on goods imported from Canada and Mexico, along with a 10% tariff on imports from China. This move is aimed at pressuring these countries to take decisive action against the flow of migrants and fentanyl crossing into the U.S.

However, an exception was made for Canadian energy resources, including natural gas and oil, for which the tariff is set at a lower rate of 10% to avoid potential disruptions in gasoline and heating oil prices, according to a White House official.

The new tariffs will add to existing duties and are scheduled to take effect on Tuesday.

Trump has made tariffs a fundamental part of his economic policy, using them to drive up tax revenue and protect American jobs. He often threatens tariffs as a bargaining tactic to secure various policy concessions from other countries.

In retaliation, leaders from Canada and Mexico announced plans to impose their own tariffs.

Claudia Sheinbaum, the president of Mexico, stated her intention to establish retaliatory tariffs and criticized Trump’s claims that the Mexican government was collaborating with drug traffickers. She suggested that if the U.S. wanted to address fentanyl issues, it should focus on combating drug sales in American cities.

“Tariffs do not solve problems; communication does,” she remarked.

In response, Canadian Prime Minister Justin Trudeau announced that Canada would implement 25% tariffs on $155 billion worth of American goods. This includes immediate tariffs on $30 billion as of Tuesday and additional tariffs on another $125 billion worth of U.S. products within three weeks.

Trudeau warned that Trump’s decision would harm Canadians and have serious repercussions for the American economy as well. He pointed out that this could endanger American jobs and bring about increased costs for consumers, affecting everything from food prices to fuel costs. He also mentioned that this move could hinder access to essential materials for U.S. security, including nickel, uranium, steel, and aluminum.

“This action violates the trade agreement that we, along with our Mexican partner, negotiated a few years ago,” he stated.

The Chinese embassy in Washington did not immediately respond to inquiries, but in a past statement, embassy spokesperson Liu Pengyu affirmed that “China will also firmly defend its own interests” in light of the tariffs.

Trump emphasized in his orders that should the affected nations retaliate against the tariffs, he may “increase or broaden the scope of the duties imposed” to counteract those actions.

Trump Considers Universal Tariff

Moreover, Trump is contemplating a universal tariff and fees on the European Union but has not disclosed specific amounts. He mentioned to journalists on Friday that he plans to raise tariffs on steel, aluminum, and copper, with additional tariffs for pharmaceuticals and computer chips on the horizon.

He also stated intentions to impose a blanket tariff on oil and gas imports by February 18.

“We must protect Americans; it’s my responsibility as President to ensure everyone’s safety,” Trump noted in a social media announcement regarding the tariffs. “I promised during my campaign to curb the influx of illegal immigrants and drugs crossing our borders, and the American public strongly supports that.”

According to U.S. Customs and Border Protection, approximately 27,023 pounds of fentanyl were seized in the 2023 fiscal year, nearly doubling the amount confiscated in 2022, which was 14,700 pounds.

The Centers for Disease Control and Prevention reported that fentanyl overdoses were responsible for around 74,702 deaths in the U.S. in 2023, a slight decrease from the estimated 76,226 deaths in 2022.

Chairman of the House Ways and Means Committee, Jason Smith, R-Mo., stated that the tariffs imposed on Canada, Mexico, and China signal that the U.S. will no longer tolerate other nations’ failure to curtail illegal drug and immigrant traffic into the country.

He expressed the necessity for the U.S. to utilize “all available tools, including tariffs,” to combat drug trafficking and fentanyl distribution, pointing out that Canada and Mexico constitute the leading sources of crude oil imports to the U.S., together accounting for roughly 25% of the oil processed by American refiners.

In 2022, Canada represented 60% of crude oil imports to the U.S., while Mexico provided 10%, according to the U.S. Energy Information Administration.

Refineries procure crude oil for the production of gasoline, diesel, and other petroleum products.

Economists persistently warn that tariffs—taxes on imports—could trigger inflation and hurt consumers. Yet, Trump and his aides have rebuffed these concerns, arguing that inflation was kept low during his first term, despite implementing tariffs on certain goods and nations.

“Tariffs do not cause inflation. They lead to success,” Trump claimed on Friday. “There might be some temporary upheaval, but people will ultimately understand.”

Democrats accused him of instigating a trade war in response to his tariff announcements on Saturday, criticizing the fact that he applied higher tariffs on U.S. allies, such as Canada and Mexico, compared to China.

“While China engages in industrial espionage and undermines American businesses, Trump targets maple syrup and avocados from Canada and Mexico with greater intensity. How does that make sense?” asked Senator Elizabeth Warren, D-Mass., in a post on X.

Republican Senator Rand Paul also voiced concerns regarding the potential inflationary impact of the tariffs on the same platform. “Tariffs are essentially taxes. Conservatives once stood united against new taxes. Taxing trade equates to less trade and increased prices,” he said.

“We secured victory in the last election by criticizing Democrats’ policies that led to high prices. Proponents of tariffs will have to justify the ongoing high prices,” added Paul, a libertarian from Kentucky.

Trump Uses National Emergency Powers for Tariffs

The White House stated that Trump is invoking the International Emergency Economic Powers Act (IEEPA) to impose the tariffs on China, Mexico, and Canada.

IEEPA grants the president the authority to address any “unusual and extraordinary threat” originating primarily from outside the United States that affects national security, foreign policy, or the economy, provided that the president declares a national emergency related to that threat.

Trump indicated that his administration concluded that the ongoing influx of illegal opioids and other drugs warranted the use of this authority, which will remain in effect until the situation improves, according to the White House.

In a statement, Representatives Suzan DelBene of Washington and Don Beyer of Virginia, two Democratic lawmakers who have proposed legislation to limit Trump’s unilateral capacity to impose tariffs, accused him of misusing executive power.

“Congress must reclaim its authority to counteract this blatant misuse of the law,” the legislators stated.

The tariffs may spark legal challenges, as some may argue that Trump is not exercising the authority as Congress intended, according to William Reinsch, a senior adviser at the Center for Strategic and International Studies (CSIS) and a former undersecretary of commerce for export administration.

Nonetheless, he acknowledged that “the threshold for what qualifies as an emergency has been considerably lowered over the years, so I believe he can get away with it.”

In the first order issued, Trump officially warned of the possibility of expanding tariffs on Canada should it choose to retaliate.

“If Canada retaliates against the U.S. in response to this action by imposing import duties on U.S. exports or taking similar actions, the President may increase or broaden the tariffs imposed under this order to maintain the effectiveness of this action,” stated the order.

This story has been updated to include new information.

Swapna Venugopal Ramaswamy and Francesca Chambers are White House Correspondents. You can follow them on X @SwapnaVenugopal and @fran_chambers.