WASHINGTON – President Donald Trump’s long-threatened tariffs on Canada and Mexico took effect Tuesday, with his administration claiming they are necessary to combat fentanyl trafficking and illegal immigration. “More Americans are dying from fentanyl overdoses each year than the number of American lives lost in the entirety of the Vietnam War,” the White House stated in a fact sheet.
Under the new policy, imports from Canada and Mexico will now be taxed at 25%, while Canadian energy products face a 10% duty. Additionally, the 10% tariff on Chinese imports imposed in February has doubled to 20%. The tariffs on Canada and Mexico were originally set to take effect in February, but Trump agreed to a 30-day suspension to allow further negotiations with the United States’ two largest trading partners. While the stated purpose of the tariffs is to combat drug trafficking and illegal immigration, Trump has also tied them to the U.S. trade imbalance—an issue unlikely to be resolved quickly.
The move has sparked backlash from Mexico, Canada and China, with leaders accusing the Trump administration of using fentanyl as a pretext for trade barriers. In a statement, Canadian Prime Minister Justin Trudeau emphasized that fentanyl seizures have dropped to “near-zero.”
“Let me be unequivocally clear – there is no justification for these actions,” said Trudeau. “While less than 1 percent of the fentanyl intercepted at the U.S. border comes from Canada, we have worked relentlessly to address this scourge that affects Canadians and Americans alike. We implemented a $1.3 billion border plan with new choppers, boots on the ground, more co-ordination, and increased resources to stop the flow of fentanyl. We appointed a Fentanyl Czar, listed transnational criminal cartels as terrorist organizations, launched the Joint Operational Intelligence Cell, and are establishing a Canada-U.S. Joint Strike Force on organized crime. Because of this work – in partnership with the United States – fentanyl seizures from Canada have dropped 97 percent between December 2024 and January 2025 to a near-zero low of 0.03 pounds seized by U.S. Customs and Border Protection.”
China also pushed back, with Foreign Ministry spokesman Lin Jian accusing Trump of using the fentanyl crisis as a political weapon to justify tariffs.
“The U.S.’s attempts to politicize and weaponize trade and economic issues, levy tariff hikes on Chinese imports under the pretext of fentanyl, and create blocks to its normal trade, investment and economic cooperation with China will only harm its own economic interests and international credibility,” Jian said.
However, the White House again pointed to fentanyl as the key motivation for the new tariffs on Monday. “While President Trump gave both Canada and Mexico ample opportunity to curb the dangerous cartel activity and influx of lethal drugs flowing into our country, they have failed to adequately address the situation,” the U.S. statement said.
Meanwhile, Mexico, Canada, and China have all vowed to retaliate. Mexico’s president says the country will respond with retaliatory tariffs on U.S. goods, with details to come. China immediately responded with 10%-15% tariffs on select U.S. imports starting March 10, along with new export restrictions on certain American entities. Canada warned that if Trump’s tariffs remain in place for more than 21 days, it will impose additional tariffs on C$125 billion worth of U.S. goods, including cars, steel, aircraft, beef, and pork. Canada also plans to challenge the tariffs under the World Trade Organization (WTO) and the U.S.-Mexico-Canada Agreement (USMCA).
The escalating trade dispute is expected to take center stage in Trump’s address before Congress on Tuesday night, where he is likely to defend his administration’s stance.