The United States has imposed a new round of tariffs on imports from Canada, Mexico, and China, triggering swift responses from its trading partners. The measures, which include a 25% tariff on Canadian and Mexican goods and a 10% tariff on Chinese imports, are set to take effect at midnight on Tuesday under executive orders signed by President Donald Trump.

The White House has framed the tariffs as a necessary response to the fentanyl crisis, holding the three countries accountable for their commitments to combat the illegal drug trade. However, both Canada and Mexico have rejected this justification and have vowed economic countermeasures.

Canadian Prime Minister Justin Trudeau announced retaliatory tariffs matching the 25% rate on $155 billion worth of American goods, calling the U.S. action “unwarranted.” He emphasized that less than 1% of illicit drug trafficking into the U.S. occurs via Canada and argued that tariffs are not a productive solution to the crisis.

In Mexico, President Claudia Sheinbaum condemned the tariffs and dismissed allegations from the Trump administration that her government is in collaboration with drug cartels. Sheinbaum stated that Mexico would introduce both tariff and non-tariff measures, though specific details have not yet been disclosed. She also reiterated Mexico’s long-standing call for the U.S. to address the southward flow of firearms that fuel cartel violence.

China also criticized the U.S. tariffs, labeling them a violation of World Trade Organization rules. The Chinese government announced plans to file a WTO complaint and implement “corresponding countermeasures” to protect its economic interests.

Trade analysts warn that these escalating tensions could lead to broader economic consequences. Paul Ashworth of Capital Economics cautioned that the tariffs could push Canada and Mexico toward economic downturns, as their economies rely heavily on exports to the U.S. The move is also expected to increase inflation in the U.S., potentially limiting the Federal Reserve’s ability to lower interest rates in the near future.