China and Canada Respond as Trump's Tariffs Are Implemented
U.S. President Donald Trump's implementation of new 25-percent tariffs on imports from Mexico and Canada began on Tuesday, coinciding with a doubling of duties on Chinese goods to 20 percent. This move has ignited renewed trade conflicts with the country’s top three trading partners.
TroibNews 
U.S. President Donald Trump's implementation of new 25-percent tariffs on imports from Mexico and Canada began on Tuesday, coinciding with a doubling of duties on Chinese imports to 20 percent, leading to renewed trade tensions with the nation’s three largest trading partners.
These tariff measures, which could disrupt nearly $2.2 trillion in annual two-way U.S. trade, became effective at 12:01 a.m. EST.
In reaction, China declared its intention to impose additional tariffs on select U.S. imports starting March 10, along with new restrictions on exports to specified U.S. entities. According to a statement from the Customs Tariff Commission of the State Council on Tuesday, a 15-percent tariff will apply to imported U.S. chicken, wheat, corn, and cotton.
Canadian Prime Minister Justin Trudeau announced that Canada would implement immediate 25-percent tariffs on C$30 billion worth of U.S. imports. He also indicated that additional tariffs amounting to C$125 billion could follow if Trump's measures remain in effect after 21 days, specifying that Canada would focus on American beer, wine, bourbon, home appliances, and Florida orange juice.
"Tariffs will disrupt an incredibly successful trading relationship," Trudeau commented, emphasizing that these tariffs would violate the U.S.-Mexico-Canada free trade agreement established during Trump’s initial term.
Ontario Premier Doug Ford expressed readiness to halt nickel shipments and electricity exports to the U.S. as a form of retaliation.
Mexican President Claudia Sheinbaum is set to reveal Mexico's response during a morning news conference in Mexico City, according to the country's economy ministry.
Tracking the Trump administration's significant tariff threats:
Since assuming office again on January 20, Trump has laid out various tariff threats, from broad tariffs on all foreign imports to targeted measures aimed at specific sectors or countries, aiming to compel compliance with his policy requests.
Key major tariff threats include:
- February 1: Trump issued executive orders and a fact sheet outlining tariffs on Canada, Mexico, and China set to take effect February 4.
- February 3: Tariffs on Canada and Mexico were temporarily suspended as Trump agreed to a 30-day negotiation period with these trading partners.
- February 4: The U.S. enacted 10-percent tariffs on imports from China announced on February 1.
- February 10: Trump restored the full 25-percent tariff on steel imports and increased aluminum tariffs to 25 percent.
- February 13: Trump directed his administration to determine "the equivalent of a reciprocal tariff with respect to each foreign trading partner."
- February 26: Trump stated the decision to impose 25-percent tariffs on products from the European Union, including automobiles.
- March 1: Trump signed a memo for Commerce Secretary Howard Lutnick to initiate a national security investigation into U.S. lumber imports under Section 232 of the Trade Expansion Act of 1962.
The impact of the tariffs on Mexican and Canadian goods could have significant consequences for the closely integrated North American economy, which relies on cross-border trade for manufacturing vehicles, energy, and agricultural products.
"Today's reckless decision by the U.S. administration is forcing Canada and the U.S. toward recessions, job losses and economic disaster," said Candace Laing, CEO of the Canadian Chamber of Commerce, in a statement.
She argued that U.S. tariffs would not create the "golden age" that Trump desires, but rather increase costs for consumers and producers and disturb supply chains. "Tariffs are a tax on the American people," she concluded.
Matt Blunt, president of the American Automotive Policy Council representing Detroit automakers, advocated for exemptions from the tariffs for vehicles conforming to the U.S.-Mexico-Canada Agreement's regional content guidelines.
Even prior to Trump’s announcement, U.S. data released Monday indicated a rise in factory gate prices to a nearly three-year peak, suggesting that upcoming tariffs could adversely affect production.
Trump's confirmation of the new tariffs caused financial markets to react sharply, with global stocks declining and safe-haven bonds seeing increased demand. The Canadian dollar and Mexican peso also depreciated against the U.S. dollar.
In an interview with the Guardian, Nobel prize-winning economist Joseph Stiglitz expressed concern that Trump's tariff threats have made the U.S. “a scary place to invest,” potentially contributing to stagflation.
"It risks the worst of all possible worlds: a kind of stagflation," Stiglitz commented.
Aarav Patel for TROIB News
These tariff measures, which could disrupt nearly $2.2 trillion in annual two-way U.S. trade, became effective at 12:01 a.m. EST.
In reaction, China declared its intention to impose additional tariffs on select U.S. imports starting March 10, along with new restrictions on exports to specified U.S. entities. According to a statement from the Customs Tariff Commission of the State Council on Tuesday, a 15-percent tariff will apply to imported U.S. chicken, wheat, corn, and cotton.
Canadian Prime Minister Justin Trudeau announced that Canada would implement immediate 25-percent tariffs on C$30 billion worth of U.S. imports. He also indicated that additional tariffs amounting to C$125 billion could follow if Trump's measures remain in effect after 21 days, specifying that Canada would focus on American beer, wine, bourbon, home appliances, and Florida orange juice.
"Tariffs will disrupt an incredibly successful trading relationship," Trudeau commented, emphasizing that these tariffs would violate the U.S.-Mexico-Canada free trade agreement established during Trump’s initial term.
Ontario Premier Doug Ford expressed readiness to halt nickel shipments and electricity exports to the U.S. as a form of retaliation.
Mexican President Claudia Sheinbaum is set to reveal Mexico's response during a morning news conference in Mexico City, according to the country's economy ministry.
Tracking the Trump administration's significant tariff threats:
Since assuming office again on January 20, Trump has laid out various tariff threats, from broad tariffs on all foreign imports to targeted measures aimed at specific sectors or countries, aiming to compel compliance with his policy requests.
Key major tariff threats include:
- February 1: Trump issued executive orders and a fact sheet outlining tariffs on Canada, Mexico, and China set to take effect February 4.
- February 3: Tariffs on Canada and Mexico were temporarily suspended as Trump agreed to a 30-day negotiation period with these trading partners.
- February 4: The U.S. enacted 10-percent tariffs on imports from China announced on February 1.
- February 10: Trump restored the full 25-percent tariff on steel imports and increased aluminum tariffs to 25 percent.
- February 13: Trump directed his administration to determine "the equivalent of a reciprocal tariff with respect to each foreign trading partner."
- February 26: Trump stated the decision to impose 25-percent tariffs on products from the European Union, including automobiles.
- March 1: Trump signed a memo for Commerce Secretary Howard Lutnick to initiate a national security investigation into U.S. lumber imports under Section 232 of the Trade Expansion Act of 1962.
The impact of the tariffs on Mexican and Canadian goods could have significant consequences for the closely integrated North American economy, which relies on cross-border trade for manufacturing vehicles, energy, and agricultural products.
"Today's reckless decision by the U.S. administration is forcing Canada and the U.S. toward recessions, job losses and economic disaster," said Candace Laing, CEO of the Canadian Chamber of Commerce, in a statement.
She argued that U.S. tariffs would not create the "golden age" that Trump desires, but rather increase costs for consumers and producers and disturb supply chains. "Tariffs are a tax on the American people," she concluded.
Matt Blunt, president of the American Automotive Policy Council representing Detroit automakers, advocated for exemptions from the tariffs for vehicles conforming to the U.S.-Mexico-Canada Agreement's regional content guidelines.
Even prior to Trump’s announcement, U.S. data released Monday indicated a rise in factory gate prices to a nearly three-year peak, suggesting that upcoming tariffs could adversely affect production.
Trump's confirmation of the new tariffs caused financial markets to react sharply, with global stocks declining and safe-haven bonds seeing increased demand. The Canadian dollar and Mexican peso also depreciated against the U.S. dollar.
In an interview with the Guardian, Nobel prize-winning economist Joseph Stiglitz expressed concern that Trump's tariff threats have made the U.S. “a scary place to invest,” potentially contributing to stagflation.
"It risks the worst of all possible worlds: a kind of stagflation," Stiglitz commented.
Aarav Patel for TROIB News
