Trump's tariffs on Canada, China, Mexico take effect — countries respond

President Trump is carrying out his previously announced plans to impose sweeping tariffs on imports Canada, Mexico and China — and all three countries are hitting back.

In a series of executive orders, Trump enacted a 25% tariff on nearly all goods coming to the U.S. from Canada and all products being imported from Mexico. The president also doubled the tariff he imposed last month on Chinese products to 20%.

In response, Canadian Prime Minister Justin Trudeau said Canada would impose tariffs on more than $100 billion of American goods over the course of 21 days. In a LinkedIn post, Per Bank, CEO and president of Canadian grocery giant Loblaw Cos., said that Loblaw is looking to secure new local food suppliers, and has onboarded 30 Canadian suppliers this year so far. It is also looking to secure alternative sourcing options for U.S. goods.

In other actions. the Liquor Control Board of Ontario will stop buying and selling American alcohol immediately. The LCBO is the sole purchaser for all American alcohol across Ontario (Canada's second largest province) and imports $965 million worth of alcohol annually, with more than 3,600 U.S. products from 36 states on its shelves, reported The Albertan. 

Claudia Sheinbaum, the president of Mexico, said her country will respond with its own retaliatory tariffs, with the moves to be announced on Sunday.

China responded with tariffs of up to 15% on a wide array of U.S. agricultural goods. It also expanded the number of U.S. companies subject to export controls and other restrictions by about two dozen.

U.S. tariffs are at their highest level since 1943, according to Yale's Budget Lab.

READ MORE: NRF, RILA urge negotiations with  Mexico and Canada, not tariffs 

In his executive orders, Trump said the flow of illegal drugs from all three of those countries requires tariffs to force their governments to take stronger action to stop narcotics smuggling into the U.S. However, since September, nearly all fentanyl seized by the U.S. came through the Southern border with Mexico, according to the U.S. Customs and Border Patrol (CBP), reported ABC News. Less than 1% of fentanyl was seized at the Northern border with Canada, CBP found.

Trump also previously announced that a plan to apply reciprocal tariffs on imports that equal any tariffs or other levies put on those products from the U.S. by other countries is still scheduled to go into effect Wednesday, April 2, 2025.

In commentary sent to Chain Store Age, Duleep Rodrigo, KPMG U.S. Consumer and Retail Sector Leader, stated the newly imposed tariffs will introduce additional cost and margin pressures for retailers on a wide range of consumer products.

“As import fees rise, some companies are likely to pass those costs on to consumers," Rodrigo said. "While retailers may adjust sourcing or pricing strategies to mitigate the impact, many will have limited ability to fully shield consumers.

"The extent of any price changes will depend on factors like supply chain flexibility, competitive dynamics, and consumer demand," concluded Rodrigo. "In this complex shifting environment, companies must balance near-term pricing decisions with long-term strategic planning to maintain stability and sustain profitability."