Canada, Mexico, and China Impose Retaliatory Tariffs Against the U.S.: Trade Tensions Escalate
New U.S. Tariffs and Justification
On Saturday, the Trump administration announced the imposition of 25% tariffs on imports from Canada and Mexico, as well as a 10% tariff on Canadian energy products. Additionally, all goods from China are now subject to a 10% import tax in the U.S.
Donald Trump stated that these measures are intended to "hold the three countries accountable for their promises to stop the flow of deadly drugs into the United States."
Canada’s Response
Canadian Prime Minister Justin Trudeau announced the implementation of 25% retaliatory tariffs on American goods, amounting to a total of $155 billion.
Trudeau criticized the U.S. trade sanctions against Canada, calling them a misguided decision:
"Less than 1% of fentanyl entering the U.S. comes from Canada. Less than 1% of illegal migrants crossing into the U.S. originate from Canada. Trade measures against Canada are not the right way to work together to save lives."
Mexico’s Countermeasures
President Claudia Sheinbaum stated that Mexico would implement both tariff and non-tariff measures against the U.S. While details have not yet been disclosed, it is expected that new 25% tariffs will be imposed on key American goods.
Sheinbaum also condemned Trump’s claims about Mexico’s alleged ties with drug cartels, calling them defamatory.
China’s Reaction
The Ministry of Commerce of China declared that Trump's decision grossly violates World Trade Organization (WTO) rules.
"China is extremely dissatisfied with this and firmly opposes it."
Beijing plans to file a lawsuit with the WTO against the U.S. for unfair trade practices and to implement countermeasures to protect its interests.
Potential Impact on Global Trade
According to analysts, these tariffs will impact trade worth $1.3-1.4 trillion, accounting for 40-43% of total U.S. imports and approximately 5% of U.S. GDP.
Top Three Largest U.S. Import Partners:
- China – 14-15%
- Mexico – 12-14%
- Canada – 12-13%
