Copy in clipboard...
China, Canada, Mexico vow swift response to Trump tariffs
Trump said a levy of 25% on Canadian and Mexican imports as well as an additional 10% tax on Chinese goods would come into force on Tuesday.
The US president said the move was in response to his concerns about illegal immigration and drug trafficking – two of the main promises on which he was elected.
In response, both Canada and Mexico said they were preparing similar tariffs on US goods, while China added it would take “necessary countermeasures to defend its legitimate rights and interests”.
The implementation of tariffs and the subsequent retaliation could mark the start of a new era of global trade wars.
Economists have warned the introduction of the import taxes by the US, and the responses from other countries, could lead to prices rising on a wide range of products, from cars, lumber, and steel to food.
Consumers in all countries could see an increase in the cost of living if businesses decide to pass on higher costs to customers, with US industry groups already raising the alarm.
But Trump has indicated he is ready to escalate the duties further if the countries retaliate.
“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.
Together, China, Mexico and Canada accounted for more than 40% of imports into the US last year.
Canada has already announced retaliatory tariffs against the US, with Canadian Prime Minister Justin Trudeau matching the 25% imposed on his country.
The Canadian prime minister pushed back on the suggestion the shared border posed a security concern, saying less than 1% of fentanyl going into the US comes from Canada. He also added less than 1% of illegal migrants entered the US through the border.
Canada is America’s largest foreign supplier of crude oil.
China said it “firmly opposes” the tariffs, but has not yet announced any retaliatory measures. The 10% tax on its imports to the US will be added over and above tariffs already imposed on China by Trump in his first term and by President Joe Biden.
“Trade and tariff wars have no winners,” said a spokesperson at China’s Washington Embassy. Meanwhile, Mexico’s President Claudia Sheinbaum ordered retaliatory tariffs against Trump’s decision. In a lengthy post on X, she said her government sought dialogue rather than confrontation with its top trade partner to the north, but that Mexico had been forced to respond in kind.
“I’ve instructed my economy minister to implement the Plan B we’ve been working on, which includes tariff and non-tariff measures in defense of Mexico’s interests,” Sheinbaum posted, without specifying what US goods her government will target.
Sheinbaum also rejected as “slander” the White House’s allegation that drug cartels have an alliance with the Mexican government, a point Trump’s administration used to justify the tariffs.