Trump Trade War: massive tariffs on Mexico and Canada declared

In a dramatic escalation of trade tensions, President Donald Trump announced on Monday night that the United States will impose a 25% tariff on imports from Mexico and Canada starting today. The decision comes amid ongoing border security and drug trafficking issues.

Trump had initially planned to impose the tariffs in February, but both Mexico and Canada attempted to negotiate alternative agreements with Washington to avoid the economic blow. However, their efforts proved unsuccessful.

Announcing the decision, Trump declared that both countries “no longer have the option” to reach a last-minute deal.

"The tariffs are ready. They will take effect tomorrow," he stated firmly.

Trump justified the tariffs as a necessary response to Mexico and Canada’s failure to curb illegal immigration and fentanyl trafficking into the U.S. He also placed part of the blame on China, which is fueling the U.S. fentanyl crisis.

"Tariffs are a very powerful weapon," Trump told reporters, emphasizing his belief that economic pressure is the most effective tool for forcing cooperation from neighboring countries.

Last month, Trump also raised tariffs on Chinese goods, prompting retaliatory measures from Beijing. On Monday night, the White House announced that tariffs on Chinese imports would increase from 10% to 20%.

U.S. Officials Acknowledge Some Progress

U.S. Secretary of Commerce Howard Lutnick admitted that both Mexico and Canada had made some progress in strengthening border security but insisted that more needs to be done—especially regarding the flow of fentanyl into the U.S.

In response to Trump’s tariff threats, Mexico recently deployed 10,000 National Guard troops to its northern border in an attempt to block illegal immigration and disrupt fentanyl smuggling networks.

Similarly, Canadian Prime Minister Justin Trudeau appointed a special task force to combat fentanyl trafficking—despite official U.S. data indicating that only 1% of seized fentanyl in America originates from Canada.

Wall Street Reacts with Sharp Declines

Trump’s tariff bombshell sent Wall Street into a tailspin, with major indices plunging by the end of the trading day:

Stock markets in New York initially started the week on a positive note, but fears of economic disruption caused a sudden shift to heavy losses by evening.

As Trump moves forward with his bold economic strategy, Mexico and Canada now face critical decisions: comply with U.S. demands or retaliate with tariffs of their own.

While the economic impact remains uncertain, one thing is clear—Trump has no intention of backing down, and the new trade war is only just beginning.