China and Canada Hit Back After Trump’s New Tariffs/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Donald Trump imposed sweeping tariffs on Mexico, Canada, and China on Tuesday, raising duties to 25% on North American imports and doubling Chinese tariffs to 20%. The move, aimed at curbing fentanyl trafficking, immediately triggered retaliatory tariffs from China and Canada, escalating trade tensions. Canada slapped tariffs on $30 billion in U.S. goods, while China imposed duties on key agricultural products like soybeans and beef. Economists warn the tariffs could drive inflation higher in the U.S., hitting consumers and businesses hard.
Quick Look: Trade War Escalates After Trump’s Tariffs
- What Happened: Trump raised tariffs on Canada, Mexico, and China Tuesday.
- China’s Response: Tariffs on U.S. agricultural goods like wheat, soybeans.
- Canada’s Response: $30 billion in retaliatory tariffs, energy supply threats.
- Economic Impact: Higher costs for U.S. consumers, global market instability.
- What’s Next: More U.S. tariffs on steel, aluminum, and agriculture expected.
China and Canada Hit Back After Trump’s New Tariffs
Deep Look: U.S. Trade War Intensifies With Canada, China
Trump Imposes Sweeping Tariffs, Cites Fentanyl Concerns
President Donald Trump implemented broad new tariffs on Mexico, Canada, and China Tuesday, increasing duties to 25% on North American imports and 20% on all Chinese goods. The White House claims the move is necessary to combat fentanyl trafficking, which it argues Mexico and China have failed to stop.
“President Trump gave both Canada and Mexico ample opportunity to curb the dangerous cartel activity and influx of lethal drugs flowing into our country,” a White House statement said.
However, the tariffs arrive at a delicate economic moment, with inflation still running high and signs of consumer spending slowing. Many analysts fear a broader trade war, which could lead to higher prices for everyday goods.
China Retaliates With Agricultural and Tech Tariffs
Beijing also took direct aim at U.S. technology firms, placing 15 American companies, including drone maker Skydio, on its export control list. This move bars Chinese suppliers from selling critical materials to these firms, a potential blow to the U.S. tech sector.
China’s Foreign Ministry spokesman, Lin Jian, vowed to fight back aggressively if Trump escalates further.
“China will fight till the end if the U.S. insists on waging a tariff war, trade war, or any other kind of war,” he declared.
Canada Hits Back With $30 Billion in Tariffs, Energy Threats
Canada’s Prime Minister Justin Trudeau responded by slapping $30 billion in retaliatory tariffs on American goods, with an additional $125 billion planned by March 25.
“Canada will not let this unjustified decision go unanswered,” Trudeau said.
The Premier of Ontario, Doug Ford, escalated tensions further by threatening to cut off U.S. energy exports, warning that American consumers would feel the pain if Trump “tries to annihilate Ontario.”
Economic Fallout: Rising Prices, Market Decline
- Fresh produce, automobiles, electronics, and crude oil are among the top goods affected by Trump’s tariffs.
- Consumers will likely face higher prices as businesses pass the costs on to them.
- Stocks of global carmakers with Mexican plants fell sharply, with Volkswagen dropping 4% and Stellantis 7% in early trading.
- Economists warn the tariffs could fuel inflation, which has already put pressure on U.S. households.
Despite Trump’s claims that exporters pay for tariffs, economists emphasize that U.S. importers—often businesses—foot the bill and typically pass the costs onto consumers.
More Tariffs on the Way?
Trump has hinted at additional tariffs, suggesting:
- Steel and aluminum tariffs will take effect March 12.
- Dollar-for-dollar retaliatory tariffs will go into effect April 2.
- Potential tariffs on U.S. agricultural imports are under review.
The National Foreign Trade Council (NFTC), a trade policy organization, criticized Trump’s approach, warning it could backfire.
“Imposing tariffs on Canada and Mexico threatens to chill a collaborative effort to strengthen our shared border and risks starting a trade war,” said NFTC Vice President Tiffany Smith.
What Happens Next?
- Congressional lawmakers will likely debate tariffs’ impact in the coming weeks.
- U.S. inflation data for March will be critical in measuring tariff fallout.
- Global markets will react to new trade tensions, affecting stock prices worldwide.
You must Register or Login to post a comment.