Canada, Mexico and China decided to hit back at Trump’s tariffs, announcing counter-measures, sparking an unprecedented trade war between these four nations.
In a move that rattled international markets, US President Donald Trump and the White House confirmed on Friday night that they would impose significant tariffs on imports from Canada, Mexico, and China.
Understandably, this has ignited swift retaliatory actions, raising concerns over a potential global trade war.
Canada and Mexico have been long-standing trade partners of the United States for decades.
Following this controversial move by Trump’s Administration now find themselves at odds with the latest protectionist shift of Washington DC. The US has announced a 25% tariff on goods from both nations.
Canadian Prime Minister Justin Trudeau gave a speech on Saturday evening, announcing retaliatory tariffs of 25% on $107 billion worth of U.S. goods, with $30 billion taking effect immediately and the remainder in three weeks.
These tariffs will target American products such as beer, wine, bourbon, fruits, clothing, sports equipment and household appliances.
During his speech, Trudeau expressed his discontent with Trump’s decision, noting that ”Canadians are perplexed as to why our closest friends and neighbours are choosing to target us.”
Trudeau characteristically added: ”I don’t think there is a lot of Americans, who wake up in the morning, saying oh, damn Canada! We should really go after Canada!”
On her behalf, Mexico’s President Claudia Sheinbaum Pardo also announced retaliatory measures against US products
While specific details were not provided, Sheinbaum Pardo criticized Trump’s accusations regarding Mexico’s role in drug trafficking and pledged to implement a “Plan B” in response.
China’s calculated response
China is now facing a 10% tariff on its exports to the US. However, Beijing is not new to facing Trump’s tariff policies.
This is the reason why China has adopted a measured approach. Chinese officials have hinted at strategic recalibrations, possibly shifting exports to alternative markets, abandoning the US. Economists warn that these actions could result in higher costs for American consumers and disrupt global supply chains.
What Trump had announced earlier
President Donald Trump decided to move forward with his threats to impose new tariffs on imports from Canada, Mexico, and China, as was made public on Friday evening.
The White House confirmed Trump’s decision during a press briefing Friday, with Press Secretary Karoline Leavitt stating that this action reflects President Donald Trump’s commitment to addressing trade imbalances between the US and other nations.
Leavitt also noted that Trump wants to combat the alleged ”inflow of illegal fentanyl” from these countries.
The tariffs take effect Saturday, Feb. 1, and will impose a 25% duty on goods imported from Canada and Mexico and a 10% levy on Chinese products.
While details about exemptions have not been made public yet, the announcement has already sparked wild concerns across the world over potential economic repercussions for both US consumers, who will have to pay for much more expensive products, and also for international trade partners, whose sales might plummet.
Related: Trump Imposes Tariffs on Canada, Mexico and China