Mexico, Canada respond to Trump’s tariffs: ‘Difficult times’ are ahead

White House officials announced that President Donald Trump has imposed 25% tariffs on Mexico and Canada and 10% tariffs on goods from China.

The tariffs, which will be implemented on Feb. 4, will be imposed via three separate executive orders that have been signed for each country, according to a White House official.

There will be a 25% tariff on all Mexican exports to the U.S. as well as on all exports to the U.S. from Canada. However, Canadian energy products will be tariffed at a lower rate of 10%.

There is a 10% tariff on all China exports to the U.S.

Tariffs of this magnitude will likely increase prices paid by U.S. shoppers since importers typically pass along a share of the cost of those higher taxes to consumers, experts previously told ABC News.

Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum both responded Saturday evening to the imposed tariffs.

Trudeau said Canada will implement 25% tariffs on $155 billion of U.S. goods.

“This includes immediate tariffs on $30 billion worth of goods effective Tuesday, followed by further tariffs on $125 billion worth of American products in 21 days,” the prime minister said.

Trudeau encouraged Canadians to read labels at the grocery store and choose “Canadian rye over Kentucky bourbon,” forgoing orange juice from Florida and “changing summer vacation plans” to visit places within Canada.

But he warned, “Of course, I won’t sugarcoat it — our nation could be facing difficult times in the coming days and weeks.”

Sheinbaum said she has instructed officials in her government to implement Plan B, “which includes tariff and non-tariff measures in defense of Mexico’s interests.”

Canadian Ambassador to the U.S. Kirsten Hillman told ABC News’ “This Week” on Sunday that Canadians expect their government to “stand up for itself.”

“I don’t think we’re not at all interested in escalating, but I think that there will be a very strong demand on our government to make sure that we stand up for the deal that we have struck with the with the United States,” she said.

The tariffs imposed by the White House could raise prices for an array of products ranging from avocados to tequila to auto parts.

The price impact remains unclear, however, since businesses within the supply chain could opt to take on some or all of the tax burden, some experts added.

Speaking at the White House on Friday, U.S. Press Secretary Karoline Leavitt said the tariffs target the three countries for hosting the manufacture and transport of illicit drugs that end up in the U.S.

“Canada, Mexico and China have all enabled illegal drugs to pour into America,” Leavitt said.

A fact sheet the White House sent out on Saturday laying out the rationale for the tariffs alleged that the Mexican government was working directly with drug cartels.

“Mexican drug trafficking organizations have an intolerable alliance with the government of Mexico,” the fact sheet stated. “The government of Mexico has afforded safe havens for the cartels…This alliance endangers the national security of the United States.”

In a withering response to that charge Saturday night, Sheinbaum said: “We categorically reject the White House’s slander of the Government of Mexico for having alliances with criminal organizations, as well as any intention to interfere in our territory.”

However, she also proposed establishing a joint U.S.-Mexico working group, “with our best public health and security teams.”

“We start from collaboration between neighboring countries. Mexico not only does not want fentanyl to reach the United States, but anywhere. Therefore, if the United States wants to combat criminal groups that traffic drugs and generate violence, we must work together in an integrated manner.”

Before the tariffs were set to take effect, leaders in Canada and Mexico had vowed to respond, indicating the possibility of a trade war.

According to the White House official, there is a retaliation clause so that if any country chooses to retaliate in any way, the signal will be to take further action with likely increased tariffs.

Mexico and Canada account for 70% of U.S. crude oil imports, which make up a key input for the nation’s gasoline supply, according to the U.S. Energy Information Administration, a government agency.

The tariffs could raise gasoline prices by as much as 70 cents a gallon for some drivers, Timothy Fitzgerald, a professor of business economics at the University of Tennessee who studies the petroleum industry, previously told ABC News.

Trump said at the Oval Office earlier this week that the tariffs may feature an exemption for oil. Such a move could mitigate the risk of a price hike for gasoline, but the inclusion of the exemption remained unclear a day before the tariffs were set to take effect.

The U.S. Chamber of Commerce issued a statement Saturday slamming the executive orders.

“The imposition of tariffs under IEEPA is unprecedented, won’t solve these problems, and will only raise prices for American families and upend supply chain,” U.S. Chamber of Commerce Senior Vice President and Head of International John Murphy said in the statement.

“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. We will continue to work with Congress and the administration on solutions to address the fentanyl and border crisis,” the statement continued.

When asked on Friday about a possible exemption for oil, Leavitt declined to directly respond. “I don’t have an update,” Leavitt said. “Those tariffs will be for public consumption in about 24 hours.”

The proposed tariffs could also raise the price of an array of fresh fruits and vegetables, including tomatoes, cucumbers, bell peppers, jalapenos, limes and mangoes, Jason Miller, a professor of supply-chain management at Michigan State University, told ABC News.

It would be difficult for the U.S. to replace those goods with domestic production or an alternative supplier, making it likely that prices would rise significantly if the tariffs take effect, he added.

The auto industry also retains deep ties to Canada and Mexico, making tariffs a threat to prices for cars and auto parts, experts said.

ABC News’ William Gretsky contributed to this report.