President Donald Trump's new tariff orders against Canada, Mexico and China all contain clauses suspending a duty-free exemption for low-value shipments below $800 that is widely seen as a loophole that has allowed shipments of fentanyl and its precursor chemicals into the United States.

President Trump has threatened to impose tariffs on Canada over drug trafficking, equating it with Mexico. U.S. government reports do not support the claim.

The White House says fentanyl smuggled to the U.S. justifies tariffs against Canada, China and Mexico. But fentanyl deaths and smuggling have been dropping fast — and Canada plays almost no role.

The Trump administration is following through on its promise to impose 25% tariffs on goods imported from Mexico and Canada and raise tariffs on Chinese goods on Saturday.

Even as Canada’s prime minister announced more than $100 billion in retaliatory tariffs, he made clear that he was imposing them reluctantly.

On Saturday, Trump signed an order imposing substantial tariffs on imports from Canada, Mexico, and China. In response, China’s commerce ministry announced it would file a complaint with the World Trade Organization and “take corresponding countermeasures,” though details were not provided.

Trump knows the United States has more leverage over its neighbors than they do over his country. But exploiting that position of strength could cause a historic rupture.

Trump signed executive orders to impose tariffs on Mexico, Canada and China under the International Emergency Economic Powers Act (IEEPA), with a White House fact sheet claiming the move is meant to hold the US’ largest trading partners “accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country.

China's government on Sunday denounced the Trump administration's imposition of a long-threatened 10% tariff on Chinese imports while leaving the door open for talks with the U.S. that could avoid a deepening conflict.

WASHINGTON (AP) — President Donald Trump on Saturday signed an order to impose stiff tariffs on imports from Mexico, Canada and China, drawing swift retaliation and an undeniable sense of betrayal from the country’s North American neighbors as a trade war erupted among the longtime allies.