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WASHINGTON (AP) — President Donald Trump has ignited a major trade war by imposing stiff tariffs on imports from Mexico, Canada, and China, triggering swift retaliation and deepening economic tensions among the longtime allies.

The executive order, signed on Saturday, declares an economic emergency, slapping 10% tariffs on all Chinese imports and 25% duties on Mexican and Canadian goods. Energy imports from Canada, including oil, natural gas, and electricity, will face a 10% tax. Trump justified the move as a defensive measure against illicit fentanyl production and illegal immigration, saying on social media:

“We must protect Americans. Canada and Mexico must do more to curb illegal immigration, and China must stop the fentanyl crisis.”

Swift Retaliation from North American Allies

Trump’s actions were met with fury from U.S. trading partners. Canadian Prime Minister Justin Trudeau condemned the decision, announcing matching 25% tariffs on $155 billion worth of U.S. goods, including alcohol and fruits.

“The actions taken today by the White House split us apart instead of bringing us together,” Trudeau said in a somber statement, emphasizing Canada’s long-standing military and humanitarian support for the U.S.

Mexican President Claudia Sheinbaum also responded aggressively, rejecting Trump’s accusations of collusion with criminal organizations. She instructed her economy secretary to impose retaliatory tariffs and other defensive measures to safeguard Mexico’s interests.

“If the U.S. government truly wants to combat fentanyl addiction, they should focus on fighting the sale of drugs in their own cities and stopping the money laundering that fuels this crisis,” Sheinbaum wrote on X.

China Joins the Trade War

China’s Ministry of Foreign Affairs expressed strong opposition, vowing countermeasures and announcing plans to file a lawsuit with the World Trade Organization (WTO) over what it called “wrongful practices” by the U.S.

“China firmly deplores and opposes this move and will take necessary actions to defend its legitimate rights,” a ministry spokesperson declared.

Economic Fallout and Political Turmoil

The tariffs are set to take effect Tuesday, raising fears of economic disruption. Analysts from Yale’s Budget Lab warned that the new taxes could cost the average U.S. household $1,170 in lost income due to rising inflation and slowed economic growth.

Senate Democratic Leader Chuck Schumer blasted Trump’s decision, warning Americans to brace for price hikes:

“You’re worried about grocery prices? Don’s raising prices with his tariffs. You’re worried about tomato prices? Wait till Trump’s Mexico tariffs hit your wallet. You’re worried about car prices? Trump’s Canada tariffs will drive them up.”

A High-Stakes Gamble for Trump

The tariffs mark a significant gamble for Trump, who campaigned on lowering prices and revitalizing the economy. While he argues the tariffs will pressure foreign governments into compliance, critics say they risk backfiring, leading to inflation spikes and alienating U.S. allies.

Despite the uproar, Trump is doubling down, hinting at additional import taxes on computer chips, steel, oil, and pharmaceuticals, potentially escalating tensions with Europe and other major economies.

As the global economic showdown intensifies, the world watches to see whether Trump’s bold move will yield results—or plunge the U.S. deeper into financial uncertainty.