Here's Why Donald Trump Imposed Tariffs On Canada, Mexico, China As Trade War Escalates

US President Donald Trump announced on Saturday that tariffs would be imposed on major US trading partners, including Canada, Mexico, and China.

Trump has set a 25% tariff on imports from Canada and Mexico and a 10% tariff on goods from China.

Photo Credit: AP/PTI

This move risks triggering an economic standoff with America's two largest trading partners, Mexico and Canada, potentially disrupting longstanding trade relationships.

If these tariffs persist, they could also exacerbate inflation in the United States.

The White House has stated that the tariffs will remain in place "until the crisis is alleviated."

Why did Trump impose tariffs?

The White House explained that President Donald Trump was taking "bold action" to hold Mexico, Canada, and China accountable for their commitments to halt illegal immigration and stop harmful drugs like fentanyl from entering the United States.

"The orders make clear that the flow of contraband drugs like fentanyl to the United States, through illicit distribution networks, has created a national emergency, including a public health crisis," the White House said in a fact sheet on the tariffs.

The Trump administration alleged that Chinese officials had not taken sufficient action to prevent the flow of precursor chemicals to criminal cartels and to shut down money laundering operations by transnational criminal organisations.

It also claimed that Mexican cartels have been operating fentanyl and nitazene synthesis labs in Canada.

"A recent study recognised Canada's heightened domestic production of fentanyl and its growing footprint within international narcotics distribution," the White House added.