The US will apply broad 25% tariffs on all imports from Canada and Mexico and an additional 10% tariff on Chinese goods following an executive order from President Donald Trump signed Saturday. The levies kick in tonight—12:01 am ET Tuesday—with an exemption for Canadian energy products, which will see a 10% tariff.
The countries are the three largest trading partners for the US, accounting for more than 40% of imports last year (see data). Canada, the largest export market for 36 US states, said it would apply a 25% tariff on more than $100B in goods in the coming weeks. Mexico said it would apply retaliatory tariffs but did not specify details.
Trump has argued the tariffs are needed to force the countries to address the flow of illegal immigration and illicit drugs across borders (read executive order). Declared a national emergency, the order is the first use of the 1977 International Emergency Economic Powers Act to apply tariffs.
Tariffs are typically paid by the importer, with costs often passed to the consumer. See how they work here.
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