U.S. President Donald Trump has imposed punishing new tariffs on Mexico, Canada, and China that set the stage for broader trade tensions with the United States’ three largest trade partners.
Trump announced the long-promised economic policy on the night of February 1, saying that Washington would hit Canada and Mexico with tariffs of 25 percent on all goods, although Canadian energy products face a lower 10 percent tariff. He said he was imposing them until the flow of migrants and illegal fentanyl into the United States was stopped.
The new tariffs also include a 10 percent tariff on goods from China and that taxes on goods from all three countries will start to come into effect on February 4.
The sweeping measures risk igniting a trade war that could significantly damage the economies of the targeted countries and the United States, especially as Canada, Mexico, and China look to respond. In preparation, the executive orders signed by Trump also include a clause that allows the president to expand the tariffs if a country imposes retaliatory tariffs on the United States.
Shortly after Trump signed the executive order for the tariffs, both Canada and Mexico said they were preparing moves of their own. Mexican President Claudia Sheinbaum said her country will impose tariffs in response, and Canadian Prime Minister Justin Trudeau announced “far-reaching” retaliatory moves.
China’s Ministry of Commerce also issued a statement saying that Beijing will file a legal case against the United States at the World Trade Organization and “take corresponding countermeasures,” without elaborating further.
