US has imposed a 25% tariff on goods imported from Canada and Mexico under an executive order by President Donald Trump.

This move aimed at tackling immigration and drug smuggling, triggered immediate reactions. Canadian Prime Minister Justin Trudeau announced retaliatory tariffs on US beer, wine and fruit juice.

Each year, thousands cross US border from Canada and Mexico seeking immigration, while drug smuggling also remains a major concern.

After taking office for the second time, Trump prioritized anti-immigration policies, now escalating them with tariffs. The new 25% tariff will take effect on February 18, impacting Chinese imports as well, where U.S. importers will pay a 10% duty.

US government argues that Canada shelters many immigrants and exploits trade advantages. Large amounts of fentanyl reportedly enter US through these borders.

White House confirmed that the tariffs will stay until the fentanyl crisis and illegal immigration emergency are under control. Fuel imports from Mexico will face a 25% duty, while Canada’s will be taxed at 10%. Special duty exemptions for low-value goods now revoked.

In response, Trudeau criticized the move saying imposing tariffs is not an effective solution for curbing illegal fentanyl trade. Canada will impose a 25% tariff on US goods affecting billion worth of imports with implementation starting Tuesday. A three-week transition allowed for businesses to seek alternatives.

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Mexico’s President Claudia Sheinbaum has also threatened countermeasures. Meanwhile, India sees trade relief, as the U.S. reduced tariffs on Harley-Davidson motorcycles by 10%, easing tensions in long-standing trade disputes between Washington and New Delhi.