U.S. President Donald Trump's latest move to impose a 25-percent tariff on imports from Mexico and Canada, along with doubling duties on Chinese goods to 20 percent, has triggered fresh trade conflicts with the United States' top three trading partners.
These tariff measures, effective from Tuesday at 12:01 a.m. EST (0501 GMT), threaten to disrupt nearly $2.2 trillion in annual two-way U.S. trade. In retaliation, the Chinese mainland has announced additional tariffs of 10-15 percent on certain U.S. imports starting March 10, alongside new export restrictions targeting designated U.S. entities.
Specifically, China will impose a 15-percent tariff on U.S. chicken, wheat, corn, and cotton. Meanwhile, Canadian Prime Minister Justin Trudeau responded by implementing immediate 25-percent tariffs on C$30 billion ($20.7 billion) worth of U.S. imports, with the threat of adding tariffs on an additional C$125 billion ($86.2 billion) if Trump's measures persist after 21 days. Trudeau highlighted products such as American beer, wine, bourbon, home appliances, and Florida orange juice as targets.
Ontario Premier Doug Ford has indicated readiness to cut off nickel shipments and electricity transmission to the U.S. as further retaliation. Mexico is also poised to announce its response, with President Claudia Sheinbaum expected to address the matter in a morning news conference.
Since taking office on January 20, Trump has initiated numerous tariff threats aimed at various sectors and countries to advance his policy agenda. These actions have already led to significant market reactions, with global stocks tumbling and safe-haven bonds rallying. The Canadian dollar and Mexican peso have also fallen against the U.S. dollar.
Economist Joseph Stiglitz warns that these tariff threats make the U.S. a "scary place to invest" and could lead to stagflation, a combination of stagnant economic growth and inflation. Meanwhile, leaders from the Canadian Chamber of Commerce and the American Automotive Policy Council have criticized the tariffs for potentially disrupting supply chains and increasing costs for consumers and producers.
Reference(s):
cgtn.com
