Washington DC [US], March 4 (ANI): US President Donald Trump administration’s blanket 25 per cent tariffs on Mexico, and Canada which aims at bringing America’s top trading partners to heel, took effect on Tuesday, as reported by CNN.
Trump has doubled the tariff on all Chinese imports to 20 per cent from 10 per cent. Those duties sit atop existing tariffs on hundreds of billions in Chinese goods.
The move, however, threaten to weaken the North American economy, including that of the US, causing significant stress for already inflation-weary consumers, as per the report
China and Canada immediately retaliated with tariffs on American goods, threatening to ignite a damaging trade war. Mexico said it would announce retaliatory measures on Sunday.
The Trump administration, for whom the tariffs were a strong poll plank in the runup to the presidential polls held last year, says that the tariffs were necessary to stem the flow of fentanyl into the US.
“While President Trump gave both Canada and Mexico ample opportunity to curb the dangerous cartel activity and influx of lethal drugs flowing into our country, they have failed to adequately address the situation,” a statement released by the White House read, shortly before the tariffs took effect.
China retaliated on Tuesday by announcing 15 per cent tariffs on chicken, wheat, corn, and cotton imports from the US, according to a statement from the State Council Tariff Commission. Additionally, a 10% per cent tariff on “sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables, and dairy products,” was also imposed, it said.
Separately, China‘s Ministry of Commerce said it added 15 American companies, including drone maker Skydio, to its export control list, which would bar Chinese companies from exporting dual-use equipment to them, as per CNN.
China‘s retaliatory tariffs followed a “restrained, targeted approach aimed at causing pain to those industries that matter the most to the supporters of the Trump administration,” said Alfredo Montufar-Helu, head of the China Center for the Conference Board. He noted China‘s tariffs give it room for negotiations to potentially avoid even more damaging tariffs down the road.
Canadian Prime Minister Justin Trudeau warned on Tuesday, said that Canada “will not back down from a fight.” He said he would implement a 25 per cent tariff on Canadian Dollar 30 billion (USD 20.7 billion) of US goods immediately, followed by an additional Canadian Dollar 125 billion (USD 86.2 billion) in 21 days’ time.
“This is a very dumb thing to do,” he said in a press conference, in remarks he said were directed at Trump. “We two friends fighting is exactly what our opponents around the world want to see.”
“We will also be challenging these illegal actions by filing dispute resolution claims at the World Trade Organization and through the USMCA,” Trudeau noted. “In the meantime, our tariffs will remain in place until the
US tariffs are withdrawn and not a moment sooner.”
Mexico‘s President Claudia Sheinbaum said on Tuesday morning that she would announce retaliatory tariffs on American imports into Mexico, as well as non-tariff measures, on Sunday. She said she will probably have a call with Trump on Thursday.
“The unilateral decision made by the United States affects national and foreign companies operating in our country, as well as our people,” she said at a press conference in Mexico City.
“No one benefits from this decision,” she added, as per CNN.
Although America’s economy remains resilient, tariffs come during a time of increasing cracks in the foundation. A Bureau of Economic Analysis report Friday showed consumer spending unexpectedly fell in January, and a recent inflation report showed consumer prices rebounded in January and inflation continues to grow at a stubbornly high pace.
Trump’s immigration crackdown also threatens homebuilding, agriculture and other key industries.
“Imposing tariffs on Canada and Mexico threatens to chill a collaborative effort to strengthen our shared border and risks starting a trade war with America’s closest trading partners,” National Foreign Trade Council (NFTC) vice President for global trade policy Tiffany Smith said in a statement on Monday, as per CNN. (ANI)
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