US President Donald Trump has signed an executive order imposing tariffs on goods from Canada, Mexico and China.
Trump signed the executive order at his Mar-a-Lago estate in Florida, CNN reports.
The same source said that this represents a reversal of the tariff-free trade between the three nations that has existed for several years.
White House press secretary Caroline Leavitt said on Friday that the tariffs on Mexico and Canada will be 25 percent, and on China 10 percent.
“The tariffs are imposed because of the illegal fentanyl that they have acquired and allowed to be distributed in our country, which has killed tens of millions of Americans,” Leavitt said.
CNN estimates that the tariffs represent a “starting gun” for what could escalate into a global trade war, with the potential for higher costs, disrupted supply chains and job losses.
Trump also acknowledged the potential for negative consequences for American consumers.
“There might be some temporary, short-term disruption and people will understand that. But the tariffs will make us very rich and very strong and we will treat other countries very fairly,” Trump said earlier.
