US President Donald Trump has announced sweeping new tariffs on all goods imported from America's three largest trading partners, China, Mexico, and Canada.

Axar.az reports that Trump said the US would impose tariffs beginning on Tuesday of 25% on Canada and Mexico, and 10% on China. Canadian energy faces a lower 10% tariff.

He had threatened to impose the import taxes if the three countries did not address his concerns about illegal immigration and drug trafficking.

Both Canada and Mexico said they are preparing retaliatory tariffs of their own.

Trump has indicated he is ready to escalate the duties if the countries retaliate.

Together, China, Mexico, and Canada accounted for more than 40% of imports into the US last year.

"Today's tariff announcement is necessary to hold China, Mexico, and Canada accountable for their promises to halt the flood of poisonous drugs into the United States," the White House said in a statement on X on Saturday.

Trump posted on his Truth Social platform: "This was done through the International Emergency Economic Powers Act (IEEPA) because of the major threat of illegal aliens and deadly drugs killing our Citizens, including fentanyl."

A tariff is a domestic tax levied on goods as they enter the country, proportional to the value of the import. They are a central part of Trump's economic vision.