Fresh trade disputes with the top three US trading partners began on Tuesday when US President Donald Trump doubled charges on Chinese goods to 20% and imposed fresh 25% tariffs on imports from Mexico and Canada.
Shortly after Trump said that all three nations had not done enough to stop the flow of the deadly fentanyl opioid and its precursor chemicals into the United States, the tariff moves went into effect at 12:01 a.m. EST (0501 GMT), with the potential to disrupt almost $2.2 trillion in two-way annual US trade.
Following the deadline, China reacted right away, announcing a number of new export restrictions for designated US firms as well as extra 10%–15% tariffs on specific US imports starting on March 10.
Retaliation against their longstanding partner was imminent for Canada and Mexico, who have reportedly enjoyed a nearly tariff-free economic relationship with the US for three decades.
According to Canadian Prime Minister Justin Trudeau, if Trump’s tariffs remained in effect after 21 days, Ottawa would impose 25% instant taxes on US imports valued at C$30 billion ($20.7 billion) and an additional C$125 billion ($86.2 billion).
Prior to this, he stated that Canada will target American home appliances, wine, bourbon, beer, and Florida orange juice.
“Tariffs will disrupt an incredibly successful trading relationship,” Trudeau stated, adding that they would be in violation of the free trade deal that Trump signed during his first term between the United States, Mexico, and Canada.
Premier Doug of Ontario retaliated by stating that he was prepared to stop energy transmission and nickel shipments from his province to the United States.
Claudia Sheinbaum, the president of Mexico, was scheduled to make her announcement during a press conference in Mexico City on Tuesday morning.
The additional 10% tariff on Chinese imports comes after Trump announced a 10% tariff on February 4 in retaliation against Beijing for the US fentanyl overdose issue.
The combined 20% charge is in addition to the 25% tariffs that Trump levied on US imports totaling about $370 billion during his first term.