A new 25% tariff on Mexican and Canadian imports doubles the mandate for Chinese goods to 20%.
A new 25% tariff on US President Donald Trump’s imports from Mexico and Canada has come into effect, doubles Chinese goods obligations to 20%, and a new trade dispute with the top three US trading partners has been announced.
The tariff measures that could reverse around $2.2 trillion in two-way annual US trade were published on Tuesday at 00:01 EST (05:01 GMT) after Trump declared that all three countries had declared that the flow of deadly opioid fentanyl and its precursor chemicals was sufficient to penetrate the US.
China responded immediately after the deadline, and announced additional tariffs of 10% and 15% on certain US imports starting March 10, as well as a series of new export restrictions for designated US entities.
Canada and Mexico have enjoyed a tariff-free trading relationship with the US for 30 years, virtually free of tariffs, but were poised to quickly retaliate against their longtime allies.
Canadian Prime Minister Justin Trudeau said that if Ottawa immediately earns 25% tariffs on $2.5 billion worth of imports, he would respond to an additional $86.2 billion if he earns 21 days at $86.2 billion. He previously said Canada would target us beer, wine, bourbon, appliances and Florida orange juice.
“Taxes will disrupt a very successful trading relationship,” Trudeau said, adding that they will violate the US-Canada free trade agreement that Trump signed during his first term.
Doug Ford of the Ontario Premier told the NBC Network that he is ready to retaliately cut off the delivery of nickel and the transmission of power from his province to the US.
Mexican President Claudia Sinbaum was expected to announce her reaction at a morning press conference held in Mexico City on Tuesday, the country’s economic ministry said.
China’s tariffs
An extra 10% obligation on Chinese products will be added to the 10% duty imposed by Trump on February 4th, punishing Beijing for the US fentanyl overdose crisis. The cumulative 20% obligation also adds up to 25% tariffs, imposing around $370 billion worth of US imports during Trump’s first term.
Some of these products have seen a sharp rise in tariffs on us, with double China’s semiconductor duties and doubled the tariff quartile on Chinese electric vehicles to over 100% under former President Joe Biden last year.
The 20% tariff applies to imports of major US electronic devices from China, previously exposed to duties, such as smartphones, laptops, video game consoles, smartwatches, speakers, and Bluetooth devices.
China’s new tariffs announced Tuesday cover a wide range of US agricultural products, including certain meats, grains, cotton, fruits, vegetables and dairy products.
Tony Chen of Al Jazeera, a report from outside the world’s largest wholesale market in China’s Yiwu city, said China is “very keen to open a market in the West, especially in the US.”
“It’s not allowed at this point and it’s a real concern here,” he said. “Little traders in places like Yiwu are almost dead from these kinds of tariffs. They say the margins are already very small.”
Beijing also placed 25 US companies under export and investment restrictions on national security reasons. Ten of these companies had their goal to sell arms to Taiwan.
The Chinese Commerce Department said US tariffs violate the rules of the World Trade Organization and “damage the basis for economic and trade cooperation between China and the United States.”
Trump’s additional tariffs on China emerged when Asian country leaders gathered for “two sessions,” the annual closure meeting of China’s parliament, and another political advisory body.