A trade dispute intensifies as China, Canada, and Mexico respond to US President Donald Trump’s imposition of tariffs at midnight US time. US tariffs have been set at 25% on goods from Canada and Mexico and 20% on those from China, indicating a significant escalation in the ongoing trade tensions. In retaliation, China plans to introduce additional tariffs on agricultural imports from the US, including chicken, corn, and soybeans, starting next week. Meanwhile, Canadian Prime Minister Justin Trudeau has announced immediate 25% tariffs on $20.7 billion worth of US imports, targeting items such as American beer, wine, bourbon, home appliances, and Florida orange juice. A further $86.2 billion in tariffs could be imposed on US goods if Trump’s measures remain in place. The situation is causing a ripple in the global markets, with significant declines observed in the stock markets of Japan and Hong Kong. The Trump administration’s strategy to impose higher tariffs aims to secure political and economic benefits, yet businesses are cautioning of the potential for widespread disruption.

Source: https://www.theguardian.com/us-news/2025/mar/04/trump-tariffs-canada-mexico-china