2025–2026 United States trade war with Canada and Mexico

On February 1, 2025, a trade war started by the United States, against Canada and Mexico began when the U.S. president Donald Trump signed orders imposing near-universal tariffs on goods from the two countries entering the United States. The order called for 25 percent tariffs on all imports from Mexico and all imports from Canada except for oil and energy, which would be taxed at 10 percent.

In response, then Canadian prime minister Justin Trudeau said Canada would retaliate with 25 percent tariffs on CA$30 billion (US$20.6 billion) of American goods, which would expand to CA$155 billion (US$106 billion) after three weeks. Mexican president Claudia Sheinbaum said Mexico would enact tariffs and non-tariff retaliation against the United States. On February 3, one day before they were set to take effect, both leaders negotiated a one-month delay for the tariffs.

The U.S. tariffs took effect on March 4; Canada's retaliatory tariffs began simultaneously, while Mexico stated it would wait to retaliate. On March 6, Trump exempted goods compliant with the United States–Mexico–Canada Agreement (USMCA) from tariffs. Later, the U.S. imposed universal tariffs on steel, aluminum, and automotive imports, including those from Mexico and Canada. Due to the USMCA exemption, as of August 2025, over 85% of Canada-U.S. trade and 84% of Mexico-U.S. trade remains tariff-free.

Trump has said the tariffs are intended to reduce the U.S.'s trade deficit with Canada and Mexico, force both countries to secure their borders with the U.S. against illegal immigration and fentanyl smuggling, and promote domestic manufacturing in the United States. Sheinbaum, Trudeau, and Trudeau's successor, Mark Carney, have called the U.S. tariffs unjustified and stated that they violate the USMCA. Trudeau said that Trump intends to use tariffs to force Canadian annexation into the United States, which Trump has vehemently suggested. Economists have said tariffs would likely disrupt trade between the three countries, upending supply chains and increasing consumer prices. In February 2026, the U.S. Supreme Court struck down the tariffs the Trump administration implemented on imports from Canada and Mexico under the International Emergency Economic Powers Act in Learning Resources, Inc. v. Trump.