U.S. Tariffs on China, Mexico, and Canada

On February 1st, Trump’s administration declared a national emergency on the “extraordinary threat posed by illegal aliens and drugs.” This gives them the power to impose international tariffs on the countries supposedly making this threat. It includes Canada, China, and Mexico. 

His administration states that it is holding “Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other poisonous drugs from entering our country.” Imports from Canada and Mexico have a 25% additional tariff, while China has a 35% tariff on all products. This will continue until the government deems the “crisis” resolved. 

Mexico declared retaliatory tariffs against the U.S. On X, President Claudia Sheinbaum posted, “I've instructed my economy minister to implement the plan B we've been working on, which includes tariff and non-tariff measures in defense of Mexico's interests.” Specific details were not shared with the public. The United States’ biggest trade partner is Mexico, and nearly $798 billion in goods and services were exchanged. She stated she wishes for dialogue with the U.S first, and after a discussion with President Trump, he agreed to suspend the tariffs.

Meanwhile, Canada immediately imposed 25% tariffs on more than $20 billion worth of U.S. imports, and over 21 days, $86 billion worth of imports will be affected. They aim to apply pressure on the U.S. to reconsider its policy. Both U.S. and Canadian tariffs will also not go into effect for at least 30 days. 

China’s finance ministry has responded by adding 10-15% tariffs to U.S. imports, starting next week. They have also filed formal complaints to the World Trade Organization and announced export controls on five critical minerals.

Fentanyl, a synthetic opioid, was initially used for pain management and anesthesia. China became one of the major sources of trafficking fentanyl. After the establishment of some regulations in 2019, it became the primary source of fentanyl precursor chemicals. China has taken steps to control fentanyl production. The amount of fentanyl seized at U.S. borders has increased in recent years, which often originates in Mexico and China. Between January and April 2025, the number of fentanyl seizures has decreased by 48% compared to the same time last year. In 2024, 48,422 people died from synthetic opioids, primarily fentanyl, according to the Center for Disease Control and Prevention (CDC). 

Pew Research Center reported 11 million illegal immigrants in the United States in 2022. The Migration Policy Institute (MPI) estimated 13.7 million in 2023. Monthly encounters peaked at 370,000 in December 2023. In 2024, there was a decrease in illegal immigration after limiting asylum access and more border enforcement. More than 70,000 individuals were removed or returned to their country since June 5.