REUTERS

US President Donald Trump on Saturday ordered sweeping tariffs on goods from Mexico, Canada and China, demanding they stanch the flow of fentanyl - and illegal immigrants in the case of Canada and Mexico - into the United States, kicking off a trade war that could dent global growth and reignite inflation.

Mexico and Canada, the top two US trading partners, immediately vowed retaliatory tariffs, while China said it would challenge Trump’s move at the World Trade Organization (WTO) and take other “countermeasures.”

In three executive orders, Trump imposed 25 percent tariffs on Mexican and most Canadian imports and 10 percent on goods from China, starting tomorrow.

He vowed to keep the duties in place until what he described as a national emergency over fentanyl, a deadly opioid, and illegal immigration to the US ends.

“Will there be some pain? Yes, maybe (and maybe not!)” Trump wrote in all-caps on his Truth social media platform. “But we will Make America Great Again, and it will all be worth the price that must be paid,” he added.

Responding to concerns raised by oil refiners and Midwestern states, Trump imposed only a 10 percent duty on energy products from Canada, with Mexican energy imports facing the full 25 percent tariff.

Canadian Prime Minister Justin Trudeau said Canada would respond with 25 percent tariffs against $155 billion of US goods, including beer, wine, lumber and appliances, beginning with $30 billion taking effect tomorrow and $125 billion 21 days later.