Tractor trailers wait in line at the Ysleta-Zaragoza International Bridge port of entry in Juarez, Mexico, on December 20, 2024. Photographer: David Peinado/Bloomberg.

President Donald Trump has followed through on threats to impose 25 percent tariffs on imports of goods from Canada and Mexico, instigating a trade war that’s set to reshape global supply chains. In an executive order posted on the White House website, Trump invoked the International Emergency Economic Powers Act, a 1970s-era law that grants the president broad tariff authority in national emergencies. He had threatened Mexico with a similar measure in 2019, but talks ultimately ended that dispute without Trump using it.


The responses from three of America’s biggest trading partners came shortly after Trump signed orders for the U.S. tariffs on Saturday. Canadian Prime Minister Justin Trudeau said the country will impose 25 percent tariffs against C$155 billion (US$106 billion) worth of U.S. goods, while Mexican President Claudia Sheinbaum also pledged retaliation. China vowed “corresponding countermeasures” to Trump’s 10 percent levy on Chinese products, without immediately announcing any new tariffs.

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