US President Donald Trump’s latest trade move sparked a retaliatory response from its trading partners, as Canada and China moved quickly to counter the new tariffs. The 25% tariff on Canadian goods and 10% tariff on Chinese goods will significantly impact American businesses that rely heavily on international trade.
Prime Minister Justin Trudeau warned that the tariffs would harm Canadians and put jobs at risk in the US auto industry. Meanwhile, China vowed to take “corresponding countermeasures” to protect its interests, with possible legal action at the World Trade Organization.
The new tariffs will also affect American consumers, as the removal of duty-free treatment for small shipments means that buyers will have to pay additional tariffs on goods. The US and its biggest trading partners are now hurtling into a new era of protectionism.
Mexico’s President Claudia Sheinbaum took a similar stance, suggesting that the US should focus on tackling the fentanyl problem in Mexico rather than targeting other countries with tariffs. The true cause of the epidemic of fentanyl deaths in the US is attributed by China to an American failure to curb drug addiction, not large-scale production or export.
The trade war escalation has sparked concerns among lawmakers and experts, who warn that it could have far-reaching consequences for the global economy. As the situation continues to unfold, one thing is clear: the impact of this move will be felt across the globe.
Source: https://www.nytimes.com/2025/02/02/world/us-tariffs-canada-china-mexico.html