Trump said the goal of the tariffs was to stop both illegal immigration to the U.S. and the supply of fentanyl across its borders with Canada and Mexico and to reduce the U.S.'s trade deficit.

Mexican president Claudia Sheinbaum said Mexico would enact tariffs and non-tariff economic retaliation against the United States.

Economists have said that the tariffs would likely disrupt trade between the three countries significantly, upend supply chains across North America, and increase consumer prices across the U.S., Mexico, and Canada.

[2] In the United States, it led to offshoring as U.S. companies relocated their businesses to Mexico for cheaper labor, harming American factory towns and workers.

[13] The three countries agreed to lift the steel and aluminum tariffs in May 2019, one year after they had begun,[14] prior to the USMCA taking effect on July 1, 2020.

[4] The U.S. government has been concerned over China–Mexico trade, particularly in the automotive sector, because it fears that Chinese companies can use Mexico to export to the U.S., circumventing tariffs on China and taking advantage of the USMCA.

[17] In November 2024, after winning the U.S. presidential election, Trump threatened 25 percent tariffs on all products from Canada and Mexico, which he said would "remain in effect until such time as drugs, in particular fentanyl, and all illegal aliens stop this invasion of our country.

"[18] Shortly after, Canadian prime minister Justin Trudeau traveled to Trump's estate in Florida to speak with him and discuss the tariffs, as well as illegal immigration and drug smuggling across the Canada–U.S.

[19] On December 16, the Canadian government announced a plan to spend CA$1.3 billion (US$913 million) on border security in order to allay Trump's concerns.

[22] Doug Ford, the premier of Ontario and head of the Council of the Federation, called a snap provincial election to be held on February 27, saying that he wanted his Progressive Conservative Party to have a stronger mandate to oppose Trump's impending tariffs on Canada.

[7] On January 31, Trudeau said on social media that Canada was "ready with a forceful and immediate response" if the U.S. moved ahead with its decision to impose tariffs on Canadian exports.

[7] Even after Trump declared his intent to impose imminent tariffs on Canada and Mexico, U.S. companies did not make any concerted effort to import large amounts of goods to the U.S. before their enactment.

[24] The orders were issued under the International Emergency Economic Powers Act (IEEPA) and were set to take effect at 12:01 a.m. Eastern Standard Time on February 4.

[4][7] The tariffs are also aimed at incentivizing manufacturers to hire Americans to make their products in the United States instead of importing them from other countries.

[26][27] According to Bloomberg News, Trump advisors Peter Navarro and Stephen Miller were the leading officials in the economic discussions regarding the imposition of tariffs, while China was included at the urging of the National Security Council.

I made a promise on my campaign to stop the flood of illegal aliens and drugs from pouring across our borders, and Americans overwhelmingly voted in favor of it."

As I have consistently said, tariffs against Canada will put your jobs at risk, potentially shutting down American auto assembly plants and other manufacturing facilities".

[37] Yukon premier Ranj Pillai said his territory's government would halt orders of U.S. alcohol, review its contracts with U.S. companies, and consider tolls on U.S. vehicles, but later said the measures would be put on hold until tariffs came into effect.

He urged that the government end the current prorogation of parliament to retaliate with measures including dollar-for-dollar tariffs on U.S. goods that he said would raise money to help "affected workers and businesses."

[7] Mexican president Claudia Sheinbaum said that Mexico would implement tariff and non-tariff retaliatory measures against the United States.

[44] On February 11, Canada appointed Kevin Brosseau, Trudeau's former deputy national security advisor and a former Royal Canadian Mounted Police senior, as the fentanyl czar.

[45] On February 10, 2025, Trump imposed 25 percent tariffs on steel and aluminum entering the United States from all countries, including Canada and Mexico, which provide the majority of the U.S.'s metal imports.

[49] In the United States, Trump's initial decision to impose tariffs on Canada and Mexico was criticized by the editorial board of The Wall Street Journal which said that his "justification for this economic assault on the neighbors makes no sense" and characterized the resulting conflict as "the dumbest trade war in history.

[4] The Budget Lab at Yale University estimated that the tariffs would lead to a loss of about US$1,200 in purchasing power for the typical American household.

[7] Tariffs could also increase the cost of electricity in some U.S. states, especially those that rely on Canadian provinces like Ontario, Quebec, and British Columbia for energy.

[7] Outside North America, tariffs on energy imports would give European and Asian oil refineries a competitive advantage against their rivals.

[10] The American Chamber of Commerce in Mexico, the group representing U.S. companies in the country, said tariffs would harm both economies and "fail to address the real challenges of security, migration and drug trafficking.

[6][8] Canada, a highly trade-dependent economy, would also likely suffer, experiencing harmed economic growth and increased prices for businesses and consumers.

[1] Canadian companies being unable to sell their products to Americans at the same volume would also cause some of them to cut workers, scale back, or even shut down entirely.