Image source, Reuters

Trump says it is "necessary" to impose tariffs on the US's top trading partners - Mexico, Canada and China - to hold them "accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country".

He says all three countries have a role to play in addressing drug trafficking and illegal immigration in the US and they are not doing enough to stop it - claims that have been strongly refuted by their leaders.

He says the administration is "using our leverage to ensure American's safety".

Tariffs are also central to Trump's economic vision, who views them as a tool for growing the US economy, protecting jobs and raising tax revenue.

Nick Marsh
Asia business reporter, Singapore

Image source, Reuters

Tariffs are nothing new to China. Eight years of hefty US taxes on Chinese-made exports - imposed by both Trump 1.0 and Joe Biden's administration - have forced Chinese businesses to find more innovative ways to reach the lucrative American market.

One approach has been to move some manufacturing to Mexico. It's a practice known as "near-shoring" and, until now, it's proved a good way to avoid tariffs.

If a product isn't technically "made in China", then it's not subject to import taxes. As a consequence, the number of Chinese firms setting up shop in Mexico has shot up in recent years, nearly tripling since 2020.

The need to cut China out of the supply chain has also encouraged many Japanese firms to take advantage of Mexican near-shoring. In fact, Japan's the world's fifth-largest foreign investor in Mexico - even more than China.

Today's measures, then, are not just a blow to Mexico, they're a new blow to Beijing, Tokyo and other Asian countries whose businesses sell to the US. Companies that had been forced to find a Plan B will now have to come up with Plan C.

We can now bring you a statement issued by the US Chamber of Commerce which warns tariffs will raise prices for Americans.

The body's Vice President, John Murphy, says the president "is right to focus on major problems like our broken border and the scourge of fentanyl" but warns the imposition of tariffs "won’t solve these problems and will only raise prices for American families and upend supply chains".

"The Chamber will consult with our members, including main street businesses across the country impacted by this move, to determine next steps to prevent economic harm to Americans," Murphy adds.

Image source, Reuters

We can now bring you some further reaction from the Chinese embassy in Washington, which says "China firmly deplores and opposes" the imposed tariffs "and will take necessary countermeasures to defend its legitimate rights and interests".

In a statement, the embassy's spokesperson says "trade and tariff wars have no winners".

"This move cannot solve the US's problems at home and more importantly, does not benefit either side, still less the world."

The White House, explaining on Saturday why it was targeting its top trading partners, said it was to hold China, Mexico and Canada "accountable" on drug trafficking - especially fentanyl - and illegal immigration.

In response to this, the spokesperson says America "needs to view and solve its own fentanyl issue in an objective and rational way instead of threatening other countries with arbitrary tariff hikes".

They add that China is tough against illegal narcotics and that fentanyl "is an issue for the US".

Image source, Reuters

Canada

Trump's executive order imposes a 25% tariff on Canadian goods and a 10% tax on its energy.

"We don't want to be here, we didn't ask for this," Canadian Prime Minister Justin Trudeau said in a press conference on Saturday.

In response, Trudeau unveiled matching 25% tariffs on 155bn Canadian dollars worth of American goods. He said 30bn will come into force on Tuesday and another 125bn in 21 days.

Mexico

Mexico faces the same 25% tariffs as Canada.

In its announcement, the White House accused Mexico's government of having "an intolerable alliance" with Mexican drug trafficking organisations.

In her response, Mexican President Claudia Sheinbaum described the allegations as "slander" and instructed her economy minister to respond with tariff and non-tariff measures. They are expected to include retaliatory tariffs of 25% on US goods.

China

China said in a statement that it was strongly dissatisfied with the tariffs and "firmly opposes" them.

The country's commerce ministry said the country would file a lawsuit with the World Trade Organization against the US for "wrongful practice" and would take countermeasures to "safeguard its own rights and interests".

The 10% tax imposed on China by Trump will be in addition to the tariffs already imposed on the country by Trump in his first term and by former President Joe Biden.

Faisal Islam
Economics editor

It was not a bluff, the tariffs are here - and this is just the opening salvo from the Oval Office.

The world trading system has not been here before. A slide towards a wider trade conflict is very much on the cards, as President Trump prepares similar tariffs firstly against Europe, and then at a lower level universally.

But what matters as much as the actions the US takes, is how the rest of the world responds.

That, in turn, requires a judgement about what the president is actually trying to achieve.

Trump regularly changes his rationale for tariffs - either to coerce diplomatic change, to deal with trade imbalances or to raise significant revenues.

Officially, the rationale for Trump's move is punishment for the trade in the synthetic opioid fentanyl, but that is widely seen as a legal pretext for "emergency" action that would normally require a congressional decision.

The real question here is whether the rest of the world, even tacitly, coordinates retaliatory tariffs on, for example, high profile political supporters of President Trump, such as Elon Musk, which is a typical feature of previous smaller disputes.

US President Donald Trump has introduced sweeping new tariffs on all goods imported from America's three largest trading partners - China, Mexico and Canada.

If you're just catching up on this, here's what you need to know:

• The US introduced tariffs on all goods imported from China, Mexico and Canada, which will begin at midnight on Tuesday, according to Trump's executive orders
• The move consists of a 25% tariff on Canada and Mexico as well as an additional 10% tax on China. Canadian energy faces a lower 10% tariff
• Trump says the tariffs are necessary to hold the three countries "accountable" on illegal immigration and drug trafficking

• In response, Canada and Mexico say they are going to introduce tariffs in retaliation
• Mexican President Claudia Sheinbaum says "problems are not resolved by imposing tariffs, but by talking"

As a reminder: A tariff is a domestic tax levied on goods as they enter the country, proportional to the value of the import

Imogen James
BBC News

Welcome back to our live page following all of the major developments after US President Donald Trump announced sweeping new tariffs on the US's top trading partners.

Trump has imposed tariffs of 25% on goods imported to the US from Canada and Mexico, a 10% tax on goods from China, and a 10% tariff on Canadian energy.

The US president said this was necessary to tackle concerns around illegal immigration and drug trafficking.

The move has been met with fierce push-back from the countries affected, with Canada and Mexico vowing to take retaliatory measures. At a news conference yesterday, Canadian Prime Minister Justin Trudeau said his government will impose 25% tariffs on 155bn Canadian dollars worth of American goods.

"We don't want to be here, we didn't ask for this," Trudeau said.

We're here to help make sense of it all, and keep track of the developing situation.

Stay tuned.

We're pausing our live coverage now. If you're just joining us, here's a quick round-up of everything that's happened so far in an eventful day for global politics.

• US President Donald Trump announced 25% tariffs on goods imported to the US from Canada and Mexico, plus a 10% tariff on Canadian energy
• Goods from China will also face a 10% tariff
• He said the measures were necessary to hold the three countries "accountable for their promises to halt the flood of poisonous drugs into the United States"
• Canadian Prime Minister Justin Trudeau announced "far-reaching" retaliatory tariffs of 25% affecting $155bn worth of American goods
• He said less than 1% of illegal migrants entered the US through the border it shares with Canada and that tariffs were "not the best way we can actually work together to save lives"
• Mexican President Claudia Sheinbaum said she would introduce both tariff and non-tariff measures in response, though hasn't yet confirmed the details
• She also described Trump's claim that the Mexican government was in an "intolerable alliance" with drug cartels as "slander" against Mexico
• China said Trump's announcement "seriously violates" the rules of the World Trade Organization.

Jonathan Josephs
BBC business reporter

This could be the start of a "very destructive trade war", according to Paul Ashworth of the consultancy Capital Economics.

He explains exports to the US make up about 20% of both Mexico and Canada's economies and these tariffs could plunge their economies into recession.

The way that is likely to happen is that the tariffs make their products more expensive for Americans who stop buying as much of them, which means lower sales and profits for Mexican and Canadian companies.

Mr Ashworth points to the likelihood of the EU also facing US tariffs in the coming months. That would likely lead to similar consequences.

He also warns that the higher prices US business and consumers face will push up inflation, and that would mean the window for any more US interest rate cuts over the next 12 to 18 months "just slammed shut".

A higher cost of borrowing is likely to squeeze living standards for US consumers and make businesses more reluctant to invest in the future.

It will also hurt governments and anyone else around the world who borrow money in US dollars.

China’s commerce ministry has responded to Trump’s 10% tariffs on all China goods.

"China is strongly dissatisfied with this and firmly opposes it," it says in a statement, adding that it's a "serious violation" of World Trade Organization (WTO) rules.

It says such measures are damaging to the normal economic and trade co-operation between China and the US.

It states it will file a lawsuit with the WTO against the US for its "wrongful practice" and will take countermeasures to "safeguard its own rights and interests".

"China urges the United States to rectify its erroneous approach, and to work with the Chinese side to face up to the problem, engage in frank dialogue, strengthen co-operation and manage differences on the basis of equality, mutual benefit and mutual respect."

Natalie Sherman
New York business reporter

Sophie Avernin, director of De Grandes Viñedos de Francia in Mexico, says Trump’s action threatens havoc well beyond the borders of the countries directly involved.

She notes that the Modelo beer brand known to be Mexican is actually owned by a Belgian company.

“He doesn’t understand – it affects globally,” she says. “It’s going to have an effect everywhere.”

She is worried about what comes next: “Americans are going to pay more for what they are going to buy. They are going to consume less… and the economy is going to slow down.”

Will Grant
Reporting from Mexico City

The Mexican President Claudia Sheinbaum’s response to the US tariffs was delivered in robust language.

Writing on X, she described the White House’s statement as “slander" against the Mexican government, after the Trump administration had accused it of having an “intolerable alliance” with Mexican drug trafficking organisations.

“If such an alliance exists”, President Sheinbaum wrote, “it is in the United States gun-manufacturers that sell high-powered weapons to these criminal groups” - part of a dispute Mexico has had with Washington for some years now, calling on the US to do more to clampdown on the illegal flow of guns south to arm the cartels.

Mexico didn’t want confrontation, said President Sheinbaum, and she has proposed the creation of a joint working group between their respective public health and security teams.

However, her key point came at the end of her statement: she had instructed the Economy Secretary, Marcelo Ebrard, to implement what she called "Plan B", adding that it included "tariff and non-tariff measures in defence of Mexico's interests”.

The measures are expected to include retaliatory tariffs of 25% on US goods, which President Sheinbaum has repeatedly said would be a central part of her government’s response.

Trudeau says the next few weeks will be difficult for Canadians and Americans.

This trade action by the Americans and our response is going to have real consequences for people and for workers on both sides of our border, he says.

"We don't want to be here, we didn't ask for this," he says. "But we will not back down in standing up for Canadians" and for the successful partnership between Canada and the US.

With that, the news conference ends.

Asked whether he thinks the US tariffs were really motivated by a desire to reduce the flow of fentanyl into the US, as Trump has claimed, Trudeau says the US-Canada border is "one of the strongest, most secure borders in the world".

"Less than 1% of fentanyl going into the United States comes from Canada. Less than 1% of illegal migrants going into the United States come from Canada," he says.

He says that "doesn't mean there isn't more to do", but adds: "This trade action against Canada is not the best way we can actually work together to save lives".

Trudeau is now taking questions.

He is asked if he has spoken with President Trump. Trudeau says he has not, despite attempts to do so after Trump was inaugurated on 20 January.

Trudeau met Trump at Mar-a-Lago, his Florida resort, in December as he tried to avert the tariffs.

The PM said he would keep the lines open with US counterparts.

He says Canadians will continue to engage with lawmakers south of the border and he will work with President Trump as he has done before.

Trudeau and Trump have at times had a contentious relationship, but the pair did work together during Trump's first term.

Moments ago, Trudeau announced Canada was imposing 25% tariffs on $155bn of US goods.

He goes on to give some details on the specific products being targeted.

He says the response will be "far-reaching" and include items like American beer, wine, bourbon, fruits and fruit juices including orange juice, vegetables, perfumes, clothing and shoes.

It will also include household appliances sporting goods and furniture, and materials like lumber and plastics.

Non-tariff measures being considered are related to critical minerals and procurement, but Trudeau does not go into more detail.

Justin Trudeau says Canada will introduce its own tariffs in retaliation to those introduce by Donald Trump on Canadian imports.

He says his government will impose 25% tariffs on $155bn-worth of American goods.

Trudeau says $30bn will come into force on Tuesday and another $125bn in 21 days to give Canadian firms time to adjust.

It is unclear if he is referring to Canadian or US dollars.

Prime Minister Justin Trudeau has opened his news conference saying he wants to speak directly to Americans, saying it will have a direct impact on prices and the US economy.

He goes on the speak about the deep historic partnership between the two nations.

He calls it a "relationship that has been the envy of the world".

Canadian Prime Minister Justin Trudeau is now addressing a news conference called following US President Donald Trump's introduction of import tariffs.

Stay with us to hear what he says.