China, Canada, and Mexico have announced retaliatory tariffs against the United States following a statement from the U.S. President declaring comprehensive tariffs on goods from these nations effective Tuesday. This move has heightened trade tensions in North America.
Canada's Reaction
Canadian Prime Minister Justin Trudeau criticized Trump's decision as 'unfair' and vowed to retaliate. On Monday, Trudeau introduced a package of counter-tariffs. It's Canada's first detailed response plan since Trump's executive order for tariffs in February.
Bloomberg quoted Trudeau: 'In the first phase, a 25% tariff will be imposed on U.S. exports worth approximately 30 billion Canadian dollars (20.6 billion U.S. dollars). These tariffs will take effect at 12:01 a.m. NY time unless the U.S. retracts its tariff decision.'
Trudeau stated that in the second round, a 25% tariff will target 125 billion dollars worth of U.S. goods for three weeks. The third stage will target key areas including automobiles, steel, and aluminum.
Trudeau insisted, 'Our tariffs will remain until the U.S. steps back from its tariff position.'
Mexico’s Response to Trump's Tariffs
Mexican President Claudia Scheinbaum responded cautiously to Trump’s tariffs. She indicated that Mexico would observe whether Trump follows through before reacting.
During a Monday press conference, Scheinbaum assured that Mexico has backup plans if the tariffs are implemented.
Scheinbaum remarked, 'We have Plans B, C, D.' However, she did not detail these plans.
Recent trade and security policy discussions between Mexican and American officials included efforts to avert tariffs. Scheinbaum described these talks as 'cordial,' noting, 'The coordination between the two nations is very good.'
Trump Discusses Tariff Implementation
Speaking from the Roosevelt Room on Monday, Donald Trump reiterated that 25% tariffs on imports from Canada and Mexico are now in effect. He claimed these measures are essential to stopping illegal immigration and drugs like fentanyl entering from both countries.
Trump stated, 'Starting tomorrow, Canada and Mexico will face a 25% tariff. It begins, and they will face these tariffs.'
China’s Stern Response to Trump’s Tariffs
Donald Trump threatened a 10% tariff on Chinese goods entering the U.S., effective March 4th. With an existing 10% tariff, China's total U.S. tariff now stands at 20%.
In retaliation, China announced a 10-15% additional tariff on American goods. The Chinese Ministry of Commerce stated, 'The unilateral tariff measures by the U.S. are serious breaches of WTO rules, undermining the foundation of China-U.S. economic cooperation. China will defend its lawful rights and interests.'
This announcement triggered turmoil in financial markets. The S&P 500 index saw a 2% drop in midday trading on Monday. Economists have raised concerns that the tariffs could fuel inflation and disrupt supply chains, further straining North American trade relations.
