Canada, Mexico Hit Back As Trump Imposes 25% Tariffs

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FEB 2

Above: Donald Trump signs executive orders in the Oval Office of the White House on Jan. 20, 2025 in Washington, DC. Image copyright: Anna Moneymaker/Getty Images North America via Getty Imagesstory last updated FEB 2

The Facts

US Pres. Donald Trump on Saturday signed executive orders to impose 25% tariffs on imports from Canada and Mexico and an additional 10% tariff on Chinese goods. Canadian energy products will receive a lower 10% rate.
The tariffs, scheduled to begin Tuesday at 12:01 am ET, were implemented through the International Emergency Economic Powers Act (IEEPA), declaring a national economic emergency related to fentanyl trafficking and undocumented immigration.
Canadian Prime Minister Justin Trudeau announced retaliatory 25% tariffs on $155B worth of American goods, with $30B taking effect immediately and $125B following in 21 days. The tariffs target items including alcohol, clothing, and household appliances.

The Spin

Narrative A

The tariffs are essential to protecting Americans and America's interests and addressing critical national security threats, including the flow of illegal drugs and immigration. These measures will help rebuild domestic manufacturing, bring jobs back to America, and generate hundreds of billions of dollars in revenue from foreign countries. They will make America prosperous and strong while ensuring trading partners are held accountable for their border security and drug control commitments.

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Narrative B

These sweeping tariffs will significantly harm American consumers through higher prices, disrupt vital supply chains, reduce US GDP, and damage relationships with key trading partners. The measures will not effectively address security concerns but instead risk triggering a devastating trade war that could damage the global economy and push all countries involved into recession. The measures are counterproductive and will likely lead to job losses and reduced economic growth while failing to address the stated policy objectives.