United States President Donald Trump on Saturday signed an executive order introducing new tariffs on Mexico, Canada and China, citing the need to curb the flow of drugs and undocumented immigrants into the country.

As per the order, starting Tuesday, a 25% tariff would be imposed on goods from Mexico and Canada, except energy products, which would be taxed at 10%. A 10% tariff would be imposed on goods from China.

Hours after Trump’s announcement, Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau announced retaliatory tariffs on the US. On the other hand, China said it would challenge Trump's move at the World Trade Organization and take other “countermeasures”, reported Reuters.

On Monday, Trump had vowed to impose tariffs on India and Brazil as well.

His announcement on Saturday could lead to significant price hikes for everyday items like avocados, sneakers and cars in the country, reported CNN. It could also have ripple effects on industries, including farming, fishing and auto production.

In Canada and Mexico, key sectors such as auto manufacturing and mineral processing are expected to experience disruptions.

Rejecting Trump’s claims that the Mexican government had alliances with criminal organisations, Sheinbaum said in a social media post that she was instructing her economy minister to implement retaliatory tariffs but gave no details.

On the other hand, Trudeau claimed that US tariffs violate the Free Trade Agreement and warned of their impact on American citizens. He also announced that Canada would impose 25% tariffs on $155 billion worth of American goods.

China’s commerce ministry said Beijing “hopes that the US will view and handle its own fentanyl and other issues in an objective and rational manner”.

It also expressed a desire to “engage in frank dialogue, strengthen cooperation and manage differences”.

On Friday, Trump reiterated his threat to impose 100% import tariffs on BRICS countries if they moved towards reducing reliance on the US dollar in global trade.

The BRICS group, initially comprising Brazil, Russia, India, China and South Africa, has expanded to include Iran, Indonesia, the United Arab Emirates, Egypt and Ethiopia.

He demanded that BRICS nations stop efforts to create or support currencies competing with the US dollar, warning of severe consequences, including 100% import tariffs and restricted access to the American market.

In December, Trump said that India and Brazil were among the countries that charged high tariffs on US products.