How Trump's New Tariffs Spark Immediate Retaliation from Canada, Mexico, and China
Explore the latest trade tensions as Trump's increased tariffs on Canada, Mexico, and China trigger swift countermeasures, impacting global markets and economies.
KEY HIGHLIGHTS
- President Donald Trump's enforcement of 25% tariffs on imports from Canada and Mexico, alongside doubling the 10% tariffs on Chinese goods, began this Tuesday, prompting immediate retaliatory actions from Beijing and Ottawa.
- China responded by imposing tariffs on a broad range of U.S. agricultural products and restricting exports from several American defense firms.
- Canada countered with 25% tariffs on C$30 billion (approximately $27 billion) worth of U.S. goods, with additional tariffs on C$125 billion in products set to activate within 21 days.
- Mexican President Claudia Sheinbaum announced plans to unveil retaliatory tariff and non-tariff measures against the U.S. this upcoming Sunday.
On Tuesday, President Donald Trump's escalated trade measures took effect, introducing 25% tariffs on Canadian and Mexican imports and doubling levies on Chinese goods from 10% to 20%. In response, both Beijing and Ottawa swiftly implemented counter-tariffs, intensifying the global trade conflict.
Financial markets reacted negatively, with stock prices dropping early Tuesday as investors feared the tariffs could provoke a prolonged trade war with America's key trading partners, potentially dampening economic growth.
China retaliated by imposing 15% tariffs on U.S. imports such as chicken, wheat, corn, and cotton, and 10% tariffs on sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables, and dairy, effective March 10. Furthermore, Beijing added 15 American companies, including several defense contractors, to its export-control list.
Canada's Strategic Response to U.S. Tariffs
After a month-long pause, Canada launched its countermeasures by imposing 25% tariffs on C$30 billion worth of U.S. goods, with an additional 25% tariff on C$125 billion set to commence within three weeks.
Canadian Prime Minister Justin Trudeau emphasized that these tariffs will remain until the U.S. retracts its trade actions and indicated ongoing discussions with provincial and territorial governments to explore further non-tariff measures if necessary.
Meanwhile, Mexican President Claudia Sheinbaum expressed strong disapproval of the tariffs, labeling them unjustified and harmful to both nations. She announced intentions to reveal Mexico’s retaliatory tariffs and non-tariff responses this Sunday.
Update as of March 4, 2025: Mexican President Claudia Sheinbaum's planned announcement regarding retaliatory measures is now included.
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