US Tariffs Spark Trade War Tension With Mexico, Canada, China

March 4 marks the official implementation of the tariffs imposed by the United States on Mexico and Canada. Through a press release, the White House confirmed the imposition of tariffs — 25% on Mexico and Canada, and 10% on China — citing national security concerns and the ongoing fentanyl crisis as justification. The move has sparked accusations of a trade war, drawing strong responses from the affected nations.

The tariffs are being implemented under the International Emergency Economic Powers Act (IEEPA), which allows Trump to take economic actions in response to threats to national security. According to President Trump, these measures are a direct response to the flow of fentanyl and other narcotics into the United States, particularly from Mexico and Canada.

Trump accused Mexican drug cartels of operating with impunity and facilitating the manufacturing and trafficking of fentanyl, which has led to a public health emergency. He stated that "the government of Mexico has afforded safe havens for the cartels," and that "the tariffs will remain in effect until such time as drugs, in particular fentanyl, and all illegal aliens stop this invasion of our country."

Additionally, Trump highlighted concerns about Canada’s growing role in the fentanyl crisis, pointing to an increase in fentanyl production in "super labs" in rural parts of western Canada. Northern border seizures of fentanyl have risen significantly, reinforcing the claim that Canada’s role in international narcotics distribution is expanding, says Trump.

Sheinbaum’s Response: Mexico Condemns the Tariffs

In response, Mexican President Claudia Sheinbaum issued a statement during a press conference calling the tariffs "unilateral" and "offensive." She states that despite Mexico’s concerted efforts to combat drug trafficking and cartel activity, including increased seizures and dismantling of clandestine laboratories, the US administration proceeded with the tariffs.

Sheinbaum cites statistics from the US Customs and Border Protection (CBP), which show a 50% reduction in fentanyl seizures from Mexico between October 2024 and January 2025. She also outlined Mexico’s security efforts, including the seizure of 121.4t of drugs, the dismantling of 329 methamphetamine labs, and the extradition of 29 high-profile criminals to the United States. Additionally, she pointed to a 15% decrease in homicide rates as evidence of Mexico’s progress in combating organized crime.

Sheinbaum criticizes the US government for failing to acknowledge its role in the opioid crisis. She points out that 80% of those detained for fentanyl trafficking at US entry points between 2019 and 2024 were US citizens. Furthermore, she highlights the issue of firearms trafficking, noting that 74% of high-powered weapons seized in Mexico originate from the United States. "Cooperation and coordination, yes. Subordination and interventionism, no. Mexico must be respected," states Sheinbaum.

China’s Response

China has announced retaliatory tariffs on certain US imports in response to Washington’s latest tariff measures, escalating trade tensions between the two economic giants. The new Chinese tariffs, ranging from 10% to 15%, will take effect on March 10 and target key US agricultural products such as chicken, wheat, corn, cotton, sorghum, soybeans, pork, and dairy.

Foreign Ministry Spokesperson Lin Jian strongly criticizes the US decision, stating: “The fentanyl issue is a flimsy excuse to raise US tariffs on Chinese imports. China has made clear its opposition more than once. Our countermeasures to defend our rights and interests are fully legitimate and necessary.” Lin also warns that pressure tactics would not work on China, asserting: “If the United States has another agenda in mind and if war is what the United States wants, be it a tariff war, a trade war, or any other type of war, we are ready to fight till the end.”

China is also taking steps through the World Trade Organization (WTO), requesting dispute consultations over the US tariff measures. The Customs Tariff Commission of the State Council says that Washington’s unilateral actions “undermine the multilateral trading system, increase the burden on American businesses and consumers, and erode the foundation of China-US economic and trade cooperation.”

Canada’s Response

Canadian Prime Minister Justin Trudeau also condemns the United States’ decision to impose new tariffs on Canadian exports, calling the move unjustified and warning of strong retaliatory measures.

“Let me be unequivocally clear – there is no justification for these actions,” Trudeau states, referring to the US administration’s imposition of 25% tariffs on Canadian exports and 10% on Canadian energy. He emphasizes that Canada has been a committed partner in combating fentanyl trafficking, noting that despite “less than 1% of the fentanyl intercepted at the US border coming from Canada,” his government has taken extensive measures, including a US$1.3 billion border security initiative, the appointment of a Fentanyl Czar, and increased intelligence coordination. As a result, “fentanyl seizures from Canada have dropped 97% between December 2024 and January 2025,” states Trudeau.

In response to the new tariffs, Canada will impose 25% tariffs on US$155 billion worth of US goods, starting with US$30 billion immediately and the remainder within 21 days. “Our tariffs will remain in place until the US trade action is withdrawn,” says Trudeau, adding that Canada is also considering additional non-tariff measures in coordination with provinces and territories.

Trudeau also warned that US citizens will be heavily affected by the new tariffs: “Because of the tariffs imposed by the United States., Americans will pay more for groceries, gas, and cars, and potentially lose thousands of jobs.” He calls the move a violation of the US-Canada trade agreement, urging Washington to reconsider its approach.

“Today, the United States launched a trade war against Canada: their closest partner and ally — their closest friend. Canadians are reasonable, but we will not back down from a fight. Not when our country is at stake,” writes Trudeau on his X account. 

Trump writes on TruthSocial that companies relocating to the United States would not face tariffs. He also warns Trudeau that if Canada imposes retaliatory tariffs on the United States, the United States will respond with an equivalent increase in reciprocal tariffs.