The implementation of new 25 percent tariffs on imports from Mexico and Canada, along with an increase in duties on Chinese goods to 20 percent, has sparked trade conflicts with the United States’ top trading partners. These tariffs, which affect nearly $2.2 trillion worth of annual US trade, went into effect at 00:01 EST on Tuesday. The tariff actions were seen as a response to the failure of these countries to adequately address the flow of fentanyl and its precursor chemicals into the United States.
Canada and Mexico, which have had a long-standing virtually tariff-free trading relationship with the US, have announced plans to retaliate against their longtime ally. Canadian Prime Minister Justin Trudeau stated that Canada would immediately impose 25 percent tariffs on $20.7 billion worth of US imports, with additional tariffs of $86.2 billion if the Trump tariffs remain in place for 21 days. Trudeau also mentioned potential targeted goods such as US beer, wine, bourbon, home appliances, and Florida orange juice. He emphasized that these tariffs would disrupt a successful trading relationship and violate the US-Mexico-Canada free trade agreement.
Mexico’s response was also expected to be announced during a news conference in Mexico City. China, on the other hand, responded by announcing additional tariffs of 10 percent and 15 percent on certain US imports starting March 10, as well as a series of export restrictions for designated US entities.
The additional 10 percent duty on Chinese goods adds to an existing 10 percent tariff imposed by Trump in February to address the US fentanyl overdose crisis. The cumulative 20 percent duty also applies to various US consumer electronics imports from China that were previously not subject to tariffs. China’s new tariffs targeted a wide range of US agricultural products and imposed export and investment restrictions on 25 US firms.
Overall, the imposition of these tariffs has raised concerns and tensions in international trade relations, impacting various industries and markets.
Source: https://www.aljazeera.com/economy/2025/3/4/trump-hits-canada-mexico-china-with-high-tariffs-as-trade-war-intensifies?traffic_source=rss
