Washington The three nations denounced the action and pledged retaliation actions just hours after President Donald Trump issued executive orders imposing duties on imports from China, Mexico, and Canada.
In a move that suggests more economic turmoil among the close trading partners, U.S. allies Canada and Mexico announced they will impose their own tariffs in retaliation to Trump’s. Although the U.S. rival China did not specify retaliatory tariffs or other particular actions, it did state that it will sue the World Trade Organization and implement “necessary countermeasures.”
Trump declared a 25% duty on imports from Mexico and Canada, with the exception of Canadian energy items, which would be subject to a 10% tariff, citing their involvement in the influx of illegal immigrants from Mexico to the United States. For the same reason, he imposed a 10% duty on Chinese goods.
With a few exceptions, the United States will start collecting the majority of the duties on Tuesday.Without providing further details, the White House stated that they will stay in place “until the crisis is alleviated”.
Over 40% of all U.S. imports last year came from China, Canada, and Mexico combined. Their governments’ tit-for-tat tariff pronouncements might drive up prices for consumers in the United States and overseas, impacting the cost of goods like vehicles, gadgets, and food.
The only politician to date to outline the specifics of Canada’s reaction has been Prime Minister Justin Trudeau. On Saturday evening, Trudeau declared that Canada would apply a 25% tariff against $155 billion worth of U.S. goods in retaliation for Trump’s decision to impose a 25% tariff on Canadian exports to the United States. Whether the $155 billion in American goods were valued in Canadian or US currency was not made clear by Trudeau. In Canadian dollars, $155 billion is equivalent to roughly $106 billion in US dollars.
The tariffs on American goods include “immediate tariffs on $30 billion worth of goods as of Tuesday,” Trudeau stated at the news conference on Saturday night. The U.S. is scheduled to start collecting tariffs on Canadian goods on the same day. About three weeks from now, he said, the remaining tariffs will be implemented “to allow Canadian companies and supply chains to seek to find alternatives.”
“Like the American tariffs, our response will also be far reaching and include everyday items such as American beer, wine and bourbon, fruits and fruit juices, including orange juice, along with vegetables, perfume, clothing and shoes,” Trudeau stated. “It’ll include major consumer products like household appliances, furniture and sports equipment, and materials like lumber and plastics, along with much, much more.”
Trudeau highlighted the long history of the U.S.-Canada partnership and contended that working with Canada, rather than punishing us, is the best course of action if President Trump wishes to herald in a new “golden age” for the United States.
Speaking directly to the American people, the prime minister warned that Trump’s action will have serious repercussions.
He also urged Canadians to consider ways they might contribute, like choosing Canadian-made goods over American-made ones at retail establishments and rearranging their summer vacations to spend more time in Canada.
A request for comment to Trudeau’s announcement was not immediately answered by the White House.
In a Spanish-language post on X on Saturday, Mexican President Claudia Sheinbaum also stated that she had directed her economic secretary “to implement the Plan B we have been working on, which includes tariff and non-tariff measures in defense of Mexico’s interests.” That plan’s specifics have not yet been revealed.
“We categorically reject the White House’s slander of the Government of Mexico alleging alliances with criminal organizations, as well as any intention to interfere in our territory,” Sheinbaum wrote in the post to X, further denouncing the tariffs.
“Mexico not only does not want fentanyl to reach the United States, it does not want it to reach anywhere,” she said in Spanish.
“Therefore, if the United States wants to combat the criminal groups that traffic drugs and generate violence, we must work together in a comprehensive manner, but always under the principles of shared responsibility, mutual trust, collaboration and above all, respect for sovereignty, which is non-negotiable,” she stated. “Coordination, yes; subordination, no.”
The Chinese Ministry of Commerce condemned the levies and warned Beijing will sue the World Trade Organization “and take necessary countermeasures to firmly safeguard its rights and interests.”
“China calls on the U.S. to correct its mistakes, work toward mutual understanding, engage in candid dialogue, strengthen cooperation, and manage differences on the basis of equality, mutual benefit, and mutual respect,” the ministry stated in a statement.
For years, the United States has prevented the World Trade Organization from hiring appellate judges, which has largely prevented it from mediating conflicts involving international trade. However, China may still use a lawsuit to rally support from other countries in opposition to the U.S. tariffs.
Trump justified his decision in a post on Truth Social, citing “the major threat of illegal aliens and deadly drugs killing our Citizens, including fentanyl.”
A public dashboard from U.S. Customs and Border Protection shows that the great majority of fentanyl seizures have occurred along the southern border rather than the northern one.
China and Mexico agree that the United States must handle the domestic fentanyl demand. The Chinese Foreign Ministry implied that the tariffs would threaten future advancements, despite the Biden administration and China’s claims that Beijing had taken action to stop the illegal international transit of precursor materials.
In a message on the ministry’s website, a spokeswoman stated that more levies are unhelpful and will inevitably hinder future counternarcotics cooperation between the two parties.
The Office of the U.S. Trade Representative reports that the top three import suppliers to the United States are China, Mexico, and Canada. As allies, Mexico and Canada have maintained stable economic ties with the United States for a long time.
Following his November pledge to impose tariffs on goods originating from the three nations, Trump issued his executive order. Trump stated throughout his campaign that he would put a minimum 60% tariff on Chinese goods and a broad duty of up to 20% on imports from other countries.
During his first term, Trump put tariffs on over $300 billion worth of Chinese imports, citing unfair trade practices. This sparked a “trade war” between the two nations as they retaliated with taxes on one another. The Biden administration maintained the levies and, in certain situations, increased them.
There will probably be public pressure to react, even if the Chinese government may try to prevent a trade war while the second-largest economy in the world is still recovering from the plague. The Chinese government now has the clear right to levy retaliatory tariffs if another nation enacts tariffs or other actions that are considered to be against international law, according to a new law that went into effect on December 1.
Experts have cautioned that additional tariffs may have an effect on national security and health programs between the two nations in addition to the economy.