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 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.

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.

U.S. President Donald Trump on Saturday ordered 25% tariffs on Canadian and Mexican imports and 10% on goods from China starting on Tuesday and declared that they would remain in place until a national emergency over the drug fentanyl and illegal immigration to the U.

Trump’s move to impose new tariffs has bewildered the United States’ closest allies and trading partners, who have vowed to respond with levies of their own.

The move likely will trigger retaliation and risk igniting a trade war that could cause broad economic disruption for all countries involved.

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