Both Canada and Mexico have responded to Donald Trump’s recent tariffs by imposing 25% punitive tariffs on US goods themselves.The decision was taken overnight and marks the start of a trade war in the region.
Canadian Prime Minister Justin Trudeau announced at a press briefing that the Canadian countermeasures will be comprehensive and include everyday products such as beer, wine, fruit, vegetables and clothing. According to Canadian Global News, Trudeau emphasized that Canada has tried to avoid this situation, but is now forced to act.
He also urged Canadians to support domestic products and consider staying in the country for their summer vacations.
– It might mean changing your summer vacation plans to stay here in Canada and explore the many national and provincial parks, historical sites and tourist destinations our great country has to offer, he added.
Mexico has also responded with punitive tariffs, according to a post by President Claudia Sheinbaum on the X platform. However, further details on the scope and design of the Mexican tariffs have not yet been made public.
Meanwhile, China, the third country targeted by Trump, has sharply criticized the US measures. In a statement issued by the Chinese Ministry of Commerce, China said it plans to complain to the World Trade Organization (WTO) and take “corresponding countermeasures”.
China believes that Trump’s 10% tariffs are unfair and violate international trade rules.
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American semiconductor manufacturers Nvidia and AMD have agreed to pay 15 percent of their revenues from chip sales in China to the US government. The arrangement is the condition for obtaining export licenses under President Donald Trump’s administration.
According to sources familiar with the situation, including a US government official, both companies approved the financial arrangement to obtain export licenses for the Chinese market, which were granted last week.
The American official stated that Nvidia agreed to share 15 percent of revenues from H20 chip sales in China, while AMD will provide the same percentage from MI308 chip revenues. The Trump administration has not yet decided how the money will be used, reports Financial Times.
Never seen before
According to export control experts, this is the first time ever that an American company has agreed to pay a portion of its revenues to obtain export licenses. However, the arrangement fits into a pattern under the Trump administration where the president urges companies to take actions, such as domestic investments, to avoid tariffs.
The Commerce Department began issuing H20 export licenses on Friday, two days after Nvidia CEO Jensen Huang met with President Trump. The administration has also begun issuing licenses for AMD’s chips to China.
Nvidia did not deny the arrangement and said: “We follow rules the US government sets for our participation in worldwide markets”. AMD commented: “Our initial licence applications have been approved” and added that the company “adhere to all US export control laws and policies”.
Criticism from security experts
The decision to sell the chips to China has drawn criticism from American security experts who argue that the H20 chip will help the Chinese military and undermine US strength in artificial intelligence.
— Beijing must be gloating to see Washington turn export licences into revenue streams, says Liza Tobin, a China expert who served on the National Security Council during Trump’s first administration.
In a letter to Commerce Secretary Howard Lutnick, Matt Pottinger, former deputy national security advisor, and 19 other security experts warned against granting H20 licenses. They called the H20 a “potent accelerator of China’s frontier AI capabilities”.
Nvidia dismissed the criticism as “misdirected” and rejected that China could use the H20 for military purposes.
The debate comes as the US and China hold trade talks that Trump hopes will pave the way for a summit with Chinese President Xi Jinping.
At a press conference on Monday, US President Donald Trump announced a massive operation to combat crime in Washington, DC.
As part of the measures, the city’s police will be placed under federal control, and hundreds of National Guard soldiers will patrol the streets to make the city safer. Trump simultaneously warned that New York could be next for similar measures.
— I’m announcing a historic action to rescue our nation’s capital from crime, bloodshed, bedlam and squalor – and worse. This is liberation day in DC and we’re going to take our capital back, Trump said during a press conference at the White House.
The president expressed frustration over what he described as the growing crime in the city.
— Our capital city has been overtaken by violent gangs and bloodthirsty criminals, roving mobs of wild youth, drugged-out maniacs and homeless people, Trump said and continued: “And we’re not going to let it happen anymore. We’re not going to take it”.
Trump noted that the operations would begin quickly, in the same way as the measures taken at the southern border to stop illegal immigration. “We’re going to clean it up real quick, like we did on the southern border”, he clarified.
BREAKING: DC will now be under FEDERAL control, the National Guard will be deployed
“This is liberation day in D.C. and we’re gonna take our capitol back!” – President Trump pic.twitter.com/RbShJTQlkD
According to US legislation, the Home Rule Act of 1973, the president has the right to take control of Washington’s police force for up to 30 days, with the possibility for Congress to extend the measures. The Trump administration has sent documents formalizing the takeover to Congress, and later in the day, DC’s police chief and other federal officials met to discuss next steps.
— This will be an opportunity for us to come together and collaborate on being able to go out and execute warrants, said MPD Police Chief Pamela Smith.
Defense Secretary Pete Hegseth clarified in an interview that the National Guard will not just be present but will act proactively in their operation.
— They will be strong, they will be tough and they will stand with their law enforcement partners., Hegseth said, adding: “If you take an action or a shot at them, there will be a consequence”.
“Doubled up on Baghdad”
Trump defended his decision and showed a chart during the press conference comparing murder statistics per capita in Washington, DC with the capitals of cocaine-exporting Colombia, Mexico and Iraq.
— We doubled up on Baghdad, he claimed, describing the situation as “completely unacceptable”.
— They’ll immediately begin massive enforcement operations targeting known gangs, drug dealers and criminal networks to get them the hell off the street, Trump said. He also suggested that certain criminals, whom he claimed came to the US illegally, will be deported.
Photo: screenshot/Truth Social/Trump
— They come from Venezuela, they come from all over the world. We’re going to get them the hell out, he explained.
The National Guard will also assist in a larger operation to remove homeless camps from public places, including parks and underpasses.
— We’re getting rid of the slums, Trump promised and mentioned that beautifying the city’s public areas and repairing median strips and potholes are part of the operation.
“False numbers”
DC Mayor Muriel Bowser, who is a Democrat, confirmed that she will comply with the federal operations but expressed concern that Trump’s decision represents a major interference in local self-governance.
— I’m going to work every day to make sure it’s not a complete disaster, Bowser said, claiming to be particularly concerned about the presence of plainclothes law enforcement personnel.
— All law enforcement be identifiable by uniform, a badge, a jacket, so that people know that they are law enforcement.
Trump addressed the criticism and responded in his way.
— I know it’s not politically correct. We’re going to get them the hell out. They won’t be here long,
New York next?
Defense Secretary Hegseth also clarified that soldiers from other states will assist in the operation.
— They will be standing right alongside our federal agents, like they were in Los Angeles. They’re going to be proactive.
Trump also mentioned that he is looking at other cities that may need similar federal operations.
— You look at Chicago, how bad it is. You look at Los Angeles, how bad it is. We have other cities that are very bad. New York has a problem, Trump said, suggesting that more cities may receive federal support if the situation doesn’t improve.
The president also took the opportunity to express his long-term visions for the city.
— Washington, DC, should be one of the safest, cleanest and most beautiful cities anywhere in the world, and we’re going to make it that, Trump summarized and promised that he intends to “clean it up real quick”.
Donald Trump is launching a harsh offensive against crime and social problems in Washington, DC.
The President promises to drive away the city’s homeless population and quickly imprison criminals roaming the streets – an offensive he says will make the capital “safer and more beautiful than it ever was before”.
“We want our capital BACK”, the President declares, and according to Trump, the measures will be implemented without delay.
“The Homeless have to move out, IMMEDIATELY. We will give you places to stay, but FAR from the Capital”, he writes on the Truth Social platform, and continues:
“The Criminals, you don’t have to move out. We’re going to put you in jail where you belong. It’s all going to happen very fast, just like the Border. This will be easier — Be prepared! There will be no ‘MR. NICE GUY'”.
Trump announced that more details will be presented at a press conference on Monday.
Photo: screenshot/Truth Social/Trump
Reaction to brutal assault
The President’s statement comes shortly after Edward Coristine, 19, also known as “Big Balls” and formerly employed at the Department of Government Efficiency (DOGE), was attacked during the night leading to Sunday. Coristine, who now works at the Social Security Administration, was assaulted by about ten youths after trying to intervene in what police suspect was a carjacking attempt.
At least two of the suspected perpetrators have been arrested, and a reward of $10,000 has been offered for information leading to the arrest of the others.
Already on Thursday, Trump presented plans to deploy federal law enforcement agencies throughout DC to reduce crime. The capital is governed under the Home Rule Act of 1973, which gives the city’s mayor and council certain powers, but where Congress has the right to review and overturn local laws – something that rarely happens.
“More violent than Baghdad”
Some Republicans have gone further and proposed a federal takeover of the capital.
According to the DC Metropolitan Police Department, violent crimes this year have decreased by 26% compared to last year, murders by 12%, and total crime by 7%. Compared to 2023, violent crime in 2024 has dropped by a full 35%. Despite the decline, DC still had the fourth highest murder rate in the US in 2023.
— It is our capital city. It is more violent than Baghdad. It is more violent than parts of Ethiopia, than parts of many of the most dangerous places in the world, said Stephen Miller, White House Deputy Chief of Staff for Policy, to reporters last week.
Is Donald Trump's loyalty to the state of Israel beginning to affect the US negotiations on the country's trade agreements with other nations? NOTE: The image is an archive photo.
US President Donald Trump threatens to halt a trade deal with Canada if the country recognizes Palestine. The statement comes after Canada’s Prime Minister confirmed plans for recognition at the UN General Assembly this coming September.
Canadian Prime Minister Mark Carney announced on Wednesday that the country plans to recognize Palestine as an independent state when the UN General Assembly convenes in September.
Carney highlighted humanitarian arguments and argued that prospects for a two-state solution have disappeared, which other countries – including France and the United Kingdom – have also expressed during the summer.
However, the recognition is conditional and dependent on reforms within the Palestinian Authority as well as promised general elections in 2026 – elections in which Hamas would not be allowed to participate.
Canada has long been committed to a two-state solution — an independent, viable, and sovereign Palestinian state living side by side with the State of Israel in peace and security.
Donald Trump reacted immediately and wrote on his Truth Social platform that Canada’s intended recognition would have serious consequences for relations between the countries.
– That will make it very hard for us to make a trade deal with them, Trump declared shortly after Canada’s announcement.
— Fan Donald J. Trump Posts From Truth Social (@TrumpDailyPosts) July 31, 2025
Shaky relations between US and Canada
Trump has previously threatened to impose 35 percent tariffs on Canadian goods from August 1, something that has already caused concern in trade relations between the neighboring countries.
According to American sources, Trump’s move aims to increase pressure on Canada to refrain from recognizing Palestine. The goal is also to defend US trade policy and geopolitical interests at a time of increased tensions surrounding Israel and the war in Gaza.
Mark Carney, (LPC), Canada’s Prime Minister. Photo: World Economic Forum/CC BY-NC-SA 2.0
The trade relationship between the US and Canada is among the world’s largest and has historically been very close, but over the past year several major conflicts regarding tariffs, energy and climate regulations have strained cooperation.
Analysts believe that an American trade halt or high tariffs could have significant economic consequences for Canada’s export industry.
It remains unclear how far the Trump administration is prepared to go, or whether Canada will stick to its planned recognition ahead of the UN meeting in September.
The situation is expected to be closely watched by both other allied countries and international organizations in the coming weeks.
