Trump announces 25% import tax on Canada and Mexico, sparking trade war fears

Toronto: US President Donald Trump said a 25% tax on goods imported from Mexico and Canada will take effect from Tuesday, raising concerns about a trade war in North America. Economists have warned that the tariffs could fuel inflation and hinder economic growth.

Canadian Prime Minister Justin Trudeau responded by announcing retaliatory tariffs on $100 billion worth of American goods within 21 days. However, Mexico has not yet declared any countermeasures.

Trump told reporters that the tax aims to pressure Canada and Mexico to take stronger action against fentanyl smuggling and illegal immigration.

He also suggested that the move is part of his broader goal to address the US trade imbalance and encourage manufacturers to relocate production to the US.