US President Donald Trump announced tariffs on imports from Canada, Mexico and China on Saturday (Feb 1). The move has been taken against a “major threat” from illegal immigration and drugs from the country’s largest trading partners.

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According to the White House officials, the president signed three executive orders, marking the first official actions of his second-term trade war.

Also read | US tariffs on Canada, Mexico and China - Here's what will be costlier for Americans now

From Tuesday (Feb 4), exports from Canada and Mexico to the United States will face a 25 per cent tariff. Energy products from Canada, including crude oil will have a 10 per cent change. The US imports nearly 60 per cent of its crude oil from Canada.

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Chinese products already faced taxes of up to 25 per cent and will now have an additional 10 per cent levy.

The president also threatened to increase the tariff rate if any of the three nations retaliated by imposing tariffs on US exports. Trump’s new tariffs will significantly affect supply chains across various sectors from energy to automobiles to food.

Trump invoked the International Emergency Economic Powers Act, which authorises the president to regulate international commerce after declaring a national emergency in response to a threat to the country, as he announced the tariffs. 

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“The extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl, constitutes a national emergency,” the White House said.

Also read | China 'firmly opposes' new US tariffs, vows 'countermeasures'

The move is taken to hold the three nations “accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country,” according to the White House.

In the statement, Washington also accused the Mexican government of having an “intolerable alliance” with drug trafficking organisations.

The US also blamed China for not taking the necessary actions to shut down flow of precursor chemicals and money laundering by criminal cartels, which has “created a national emergency, including a public health crisis” due to drugs like fentanyl. The president claimed that Chinese fentanyl make its way into the US through Mexico and Canada, which failed to monitor their borders.

Also read | Canada will hit US with retaliatory tariffs Tuesday, says Trudeau

‘Keeping his promise’

Trump has repeatedly mentioned the imposition of the tariffs, which he made official on Saturday (Feb 1).

“When voters overwhelmingly elected Donald J. Trump as President, they gave him a mandate to seal the border. That is exactly what he is doing,” the White House said.

“Tariffs are a powerful, proven source of leverage for protecting the national interest.”

Trump has also expressed plans to enforce duties on the European Union in future.

Watch | Donald Trump announces significant new tariffs on Mexico, Canada, and China

Canada and China retaliate

In response to the tariffs imposed by the US, Prime Minister Justin Trudeau said, “Canada will be responding to the US trade action with 25 per cent tariffs against Can$155 billion ($106 million) worth of American goods.”

China has also said it “firmly opposes’ the new tariffs imposed by US President Donald Trump, vowing to take “corresponding countermeasures to resolutely safeguard our own rights and interests.”

(With inputs from agencies)