WASHINGTON: US President Donald Trump announced on Sunday the introduction of new tariffs targeting imports from Canada, Mexico, and China. Starting Tuesday, goods from Canada and Mexico will face a 25% tariff, while Canadian energy products, such as oil, natural gas, and electricity, will be taxed at 10%. Imports from China will be hit with an additional 10% tariff.

Trump justified these measures by declaring an economic emergency. His plan also allows for further tariff hikes if the targeted countries respond with their own trade barriers, raising concerns about deepening trade tensions.

How Did Canada, Mexico, and China React?

All three nations responded promptly with their own tariffs against US products.

Mexico:

Mexican President Claudia Sheinbaum Pardo ordered her Secretary of Economy to roll out "Plan B," which involves both tariff and non-tariff measures aimed at defending Mexico’s interests. She strongly rejected US accusations suggesting ties between the Mexican government and criminal groups. In a post on X, Sheinbaum said, “Tariffs won’t solve problems. Dialogue and cooperation, like we’ve had recently with your State Department on migration, are the real solutions, always with respect for human rights.”

Canada:

Canadian Prime Minister Justin Trudeau announced that Canada will impose 25% tariffs on USD155 billion worth of American goods. The first wave, hitting $30 billion in goods, will start Tuesday, followed by additional tariffs on $125 billion in US products within three weeks. The targeted items will include American beer, wine, bourbon, fruits, juices, vegetables, perfumes, clothing, shoes, household appliances, furniture, sports gear, lumber, and plastics.

Trudeau also mentioned that Canada is considering non-tariff measures related to critical minerals, energy procurement, and other key partnerships. He urged Canadians to support local businesses and consider spending their vacations within the country.

China:

China’s Commerce Ministry announced that it would challenge the US tariffs at the World Trade Organization (WTO) and implement its own counter-tariffs. The ministry stated that the US actions violate WTO rules and called on Washington to engage in honest dialogue to improve cooperation.

Rising Trade Tensions

These new tariffs have intensified trade disputes between the US and its key partners. With retaliatory measures in place, the risk of a broader trade conflict looms, potentially affecting global markets and everyday consumers.

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