2025 United States trade war with Canada and Mexico

A <a href="/facts/Trade_war/3f5cxbHD">trade war</a> involving the <a href="/facts/United_States/P0sCdLe5">United States</a>, <a href="/facts/Canada/cWWFM8oc">Canada</a>, and <a href="/facts/Mexico/IT5bwhdh">Mexico</a> began on February 1, 2025, when U.S. president <a href="/facts/Donald_Trump/pqqKY21P">Donald Trump</a> signed orders <a href="/facts/Tariffs_in_the_second_Trump_administration/UbUyRCXQ">imposing near-universal tariffs</a> on goods from the two countries entering the United States. The order called for 25 percent tariffs on all imports from Mexico and all imports from Canada except for <a href="/facts/Petroleum_industry_in_Canada/IULPERv2">oil and energy</a>, which would be taxed at 10 percent.
In response, Canadian prime minister <a href="/facts/Justin_Trudeau/fmCWle6G">Justin Trudeau</a> said Canada would retaliate with 25 percent tariffs on <a href="/facts/Canadian_dollar/NMSsTyIE">CA$</a>30 billion (<a href="/facts/United_States_dollar/naEEDUhC">US$</a>20.6 billion) of American goods, which would expand to CA$155 billion (US$106 billion) after three weeks. Mexican president <a href="/facts/Claudia_Sheinbaum/NUHT4KPP">Claudia Sheinbaum</a> said Mexico would enact tariffs and non-tariff retaliation against the United States. On February 3, one day before they were set to take effect, both leaders negotiated a one-month delay for the tariffs.
The U.S. tariffs took effect on March 4; Canada's retaliatory tariffs began simultaneously, while Mexico stated it would wait to retaliate. On March 6, Trump delayed tariffs on goods compliant with the <a href="/facts/United_States%25E2%2580%2593Mexico%25E2%2580%2593Canada_Agreement/qEPH1gYJ">United States–Mexico–Canada Agreement</a> (USMCA)—accounting for approximately 50 percent of imports from Mexico and 38 percent of imports from Canada. Although the exemption was expected to end on April 2, the U.S. said it would continue indefinitely. Later, the U.S. imposed universal tariffs on steel, aluminum, and automotive imports, including those from Mexico and Canada. 
Trump has said the tariffs are intended to reduce the U.S.'s <a href="/facts/Balance_of_trade/0kWmf4Cw">trade deficit</a> with Canada and Mexico, force both countries to secure their borders with the U.S. against <a href="/facts/Illegal_immigration_to_the_United_States/BtcLkouj">illegal immigration</a> and <a href="/facts/Fentanyl/MMD9GdD3">fentanyl</a> smuggling, and promote domestic manufacturing in the United States. Sheinbaum, Trudeau, and Trudeau's successor, <a href="/facts/Mark_Carney/KhaJA0KI">Mark Carney</a>, have called the U.S. tariffs unjustified and stated that they violate the USMCA. Trudeau said that Trump intends to use tariffs to force <a href="/facts/Movements_for_the_annexation_of_Canada_to_the_United_States/kF5qxzdo">Canadian annexation into the United States</a>, which Trump has suggested. Economists have said tariffs would likely disrupt trade between the three countries, upending supply chains and increasing consumer prices.

2025 United States trade war with Canada and Mexico open-in-new

2025 United States trade war with Canada and Mexico