President Trump signs an Executive Order imposing tariffs on Canada, Mexico, and China, citing drug and migration concerns, potentially leading to higher prices for U.S. consumers.
Much has been said about the decision, and much of it was wrong. Here’s why Trump did it.
At a Glance
- Trump imposes tariffs on Canada, Mexico, and China to combat drug trafficking and illegal immigration
- Tariffs range from 10% to 25%, with Canadian energy products exempt
- Executive Order cites International Emergency Economic Powers Act and National Emergencies Act
- Move could jeopardize the United States-Mexico-Canada Agreement (USMCA)
Trump’s Executive Order: Targeting Drug Trafficking and Immigration
On February 1, 2025, President Donald J. Trump signed an Executive Order imposing tariffs on goods from Canada, Mexico, and China. The order, which cites the International Emergency Economic Powers Act (IEEPA) and the National Emergencies Act (NEA) as legal authorities, aims to pressure these countries to stop the flow of fentanyl and immigrants into the United States. This move expands a national emergency previously declared at the southern border to include threats from the northern border.
The tariffs imposed are significant, with a 25% ad valorem tariff on Canadian products and a lower 10% tariff on energy resources. A senior administration official explained the exemption for Canadian energy products, stating, “The only products exempt from the tariffs are Canadian energy products, which would have a lower tariff rate of 10% to ‘minimize any disruptive effects we might have on gasoline and home heating oil prices’.”
FOR IMMEDIATE RELEASE
02/01/25
Fact Sheet: President Donald J. Trump Imposes Tariffs on Imports from Canada, Mexico, and ChinaADDRESSING AN EMERGENCY SITUATION: The extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl, constitutes a national…
— Sharyl Attkisson 🕵️♂️💼🥋 (@SharylAttkisson) February 2, 2025
The implementation of these tariffs has raised concerns among economists and various industries. Experts predict that the tariffs will lead to increased consumer prices for a wide range of goods, as companies importing products into the U.S. will bear the costs. Industries particularly vulnerable to these changes include automotive, construction, and food supply chains.
“We need to protect Americans, and it is my duty as President to ensure the safety of all,” Trump said about the matter.
But unions are panicking. The United Auto Workers union and other labor organizations have expressed concerns about the potential impact on workers and industries. Additionally, businesses, including homebuilders and alcohol producers, warn of negative economic consequences. The tariffs could significantly disrupt supply chains, affecting industries that rely heavily on cross-border trade.
The Executive Order has the potential to jeopardize the United States-Mexico-Canada Agreement (USMCA), a trade pact that currently allows for tariff-free movement of products between the three countries. There are concerns that retaliation from Canada and Mexico could make U.S. products less competitive in those markets, affecting U.S. exports.
But here’s the thing: the very fact that tariffs threaten these deals is what makes them a good negotiating tool. Within 24 hours, Mexico was already committing to send more national guard troops to the border to help stop the flow of illegal aliens into the United States. And now, despite some back-and-forth retaliations, Canada is expected to come to the negotiating table, too.
Trump is getting things done without actually even implementing the tariffs to begin with. And the media can’t admit he was right.
