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 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 has ordered sweeping tariffs on goods from Mexico, Canada and China, demanding that they curb the flow of illegal immigrants and fentanyl into the United States, kicking off a trade war that could dent global growth and stoke inflation.

Trump’s tariffs on Canada, Mexico, and China are linked to the fentanyl crisis. But what is fentanyl and how has it spawned a crisis spanning four countries?

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.

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.

Trump is imposing blanket tariffs of 25 percent on all Canadian and Mexican goods – aside from a carveout of a lower 10 percent tariff on Canadian energy – and an additional 10 percent tariff on goods from China, defying economist predictions that the tariffs would not be wide-sweeping.

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