Trade war erupts as Trump hits Canada, Mexico and China with tariffs
Add Axios as your preferred source to
see more of our stories on Google.

President Trump at the White House on Monday. Photo: Roberto Schmidt/AFP via Getty Images
President Trump's 25% tariffs on imports from Canada and Mexico, as well as new levies on Chinese imports took effect on Tuesday.
Why it matters: Trump's confirmation of the tariffs sent markets sliding amid fears it could raise prices for U.S. customers, hurt the economy and prompt a trade war.
- Canada and China took retaliatory action against U.S. products as tariffs targeting their countries took effect.
What to watch: Commerce Secretary Howard Lutnick suggested that a deal with North American allies could be announced as soon as Wednesday, opening the door for potential tariff relief.
- "I think he's going to work something out with them," Lutnick told Fox Business on Tuesday, referring to Trump.
- "It's not gonna be a pause. None of that pause stuff. But I think he's gonna figure out, 'you do more, and I'll meet you in the middle,'" Lutnick added.
Where it stands: Lutnick spoke after financial markets fell for the second straight day.
- Canada and China announced retaliatory measures after the tariffs took effect on Tuesday.
- Mexico's president, Claudia Sheinbaum, said Tuesday she would hold a rally in Mexico City in the days ahead to announce a package of response measures.
Zoom in: In a statement, Canadian Prime Minister Justin Trudeau said the nation would impose tariffs on "$30 billion worth of goods immediately, and tariffs on the remaining $125 billion on American products in 21 days' time."
- After Chinese imports were hit with an additional 10% tariff on top of the 10% Trump had imposed earlier this year, officials in Beijing announced 15% tariffs on some U.S. agriculture imports, including chicken, corn, cotton and wheat.
State of play: Trump last month struck a deal on border security with Canadian and Mexican officials and paused the tariffs for 30 days. President Trump said no progress had been made during negotiations.
- In a statement, the White House said the tariffs would "combat the extraordinary threat to U.S. national security, including our public health posed by unchecked drug trafficking."
What they're saying: Trudeau said that Canada has "worked relentlessly" to address concerns about fentanyl entering the U.S., although a minuscule amount originates from the nation.
Go deeper: Trump tariffs will cause price hikes on these everyday goods
Editor's note: This article has been updated with comments from Commerce Secretary Howard Lutnick.
Courtenay Brown contributed reporting.
