Mr. Trump signed an order to impose a 10% tax on all imports from China.

President Donald Trump on February 1 signed an executive order declaring a national economic emergency based on the International Emergency Economic Powers Act and the National Emergencies Act, to order an increase in import tariffs on goods from America's three largest trading partners.

Energy imports from Canada will be subject to a 10% tariff, while those from Mexico will remain at 25%. Almost all other goods from Mexico and Canada will be subject to a 25% tariff, and all Chinese goods will be subject to an additional 10% tariff.

The order will take effect at 0:01 a.m. on February 4 (12:01 p.m. on February 5, Hanoi time). Goods from Canada, Mexico, and China that are loaded onto cargo ships or in transit to the US before this date will be exempt from the new tariffs.

President Trump emphasized that the tariffs are aimed at addressing the fentanyl (opioid painkiller) and illegal immigration emergencies, demanding that the three countries take stronger measures to stop fentanyl from entering the US and control the border. The tariffs will remain in effect until the US declares a national emergency on these two issues.

The White House did not explain what actions China, Canada and Mexico would need to take, or what criteria they would need to meet, for the US to reduce tariffs. Mr Trump has warned that tariffs would be raised if any country retaliated.

Immediately after President Trump signed the tariff order, Mexican President Claudia Sheinbaum declared that her country would "never bow down in negotiations and exchanges with other countries."

Canadian Energy and Resources Minister Jonathan Wilkinson stressed that the country is “prepared and ready to fight” to ensure the rights of its people. He also criticized Mr. Trump for imposing unjustified tariffs on Canada, affirming that his country “has not taken any provocative actions.”

Three alcohol trade unions in the United States, Canada and Mexico issued a joint statement expressing concern over President Trump's new tariffs, warning of a "spiral of retaliatory tariffs that will negatively impact the shared businesses of the three countries." The unions called on "all parties involved to engage in constructive dialogue and proactively address concerns."

Senate Democratic leader Chuck Schumer said the order would hit Americans' wallets. "Donald Trump should be focusing on lowering prices, not making things more expensive," Schumer said, adding that the government should "take a tough line on competitors like China who are playing the game" instead of attacking allies.

Tariffs are paid by US businesses to the government when they buy goods from abroad, and the economic burden from new tariffs can fall on importers, foreign suppliers or consumers.

Wendong Zhang of Cornell University in New York said Canada and Mexico would lose 3.6% and 2% of their real GDP (GDP adjusted for inflation) respectively, while the US would lose 0.3% of its real GDP, when the new tariffs are imposed. Analysts at Oxford Economics, a leading global economic consultancy, warned that tariffs and retaliation could push Canada and Mexico into recession, with the US also at risk of a mild recession.

Canada exported nearly 80% of its goods to the US in 2023 and accounted for nearly 60% of its crude oil imports into the US.

The United States imports a lot of cars and car parts from Canada and Mexico. The United States also imports a lot of agricultural products from these two neighboring countries, with items such as fruits, vegetables, grains, along with livestock and poultry.