Canada, Mexico, and China are set to retaliate against the US after President Trump imposed new tariffs on imports. The move, citing border security and drug trafficking concerns, could spark a global trade war. Experts warn of rising costs for consumers, with key industries bracing for economic fallout.
Canada, Mexico, and China have vowed to retaliate against newly imposed U.S. tariffs announced by President Donald Trump. The measures, which take effect Tuesday, include a 25% tariff on imports from Canada and Mexico, while Chinese goods face an additional 10% levy. Canadian energy exports will see a reduced 10% tariff.
Trump justified the decision by citing concerns over illegal immigration and drug trafficking, issues central to his administration’s agenda. The White House emphasized that these tariffs aim to pressure these nations into stronger border control and anti-narcotics measures.
In response, Mexico and Canada announced their countermeasures, with Mexico’s President Claudia Sheinbaum dismissing U.S. claims of government ties to cartels as "slander." She instructed her economy minister to prepare tariffs of up to 25% on American goods. Canadian Prime Minister Justin Trudeau also pledged retaliation, unveiling tariffs targeting $155 billion worth of U.S. exports, including alcohol, produce, and manufactured goods. Non-tariff measures affecting critical minerals and procurement are also under consideration.
China strongly opposed the tariffs, warning of "necessary countermeasures" and planning to challenge the U.S. at the World Trade Organization. It emphasized that trade wars ultimately harm all parties involved.
Economists caution that escalating tariffs could increase consumer prices and disrupt North American supply chains, particularly in auto manufacturing and housing. Despite industry concerns, Trump remains firm, suggesting even higher tariffs if retaliation continues. As tensions mount, global trade relations face heightened uncertainty, with businesses and consumers bracing for economic ripple effects.
