President Donald Trump has imposed new tariffs on Canada, Mexico, and China, citing concerns over illegal immigration and drug trafficking into the United States.
The tariffs include a 25% levy on Canadian and Mexican imports and a 10% tariff on Chinese goods. Canadian energy imports face a separate 10% tariff. These measures, enacted under the International Emergency Economic Powers Act, have sparked strong reactions from the affected countries, each preparing to respond with countermeasures.
Mexico plans retaliatory tariffs but seeks cooperation
Mexican President Claudia Sheinbaum has criticized the tariffs, emphasizing that her government has made significant efforts to combat drug trafficking. She highlighted the seizure of 40 tons of drugs, including 20 million fentanyl doses, and the arrest of multiple individuals in recent months. Despite these measures, she was willing to collaborate with the United States on security and public health issues.
Sheinbaum has instructed Mexico’s economic minister to draft a plan for retaliatory tariffs. While she prefers diplomatic solutions, she stressed that Mexico’s sovereignty is non-negotiable. Financial analysts warn that prolonged tariffs could push Mexico into a recession and deter foreign investments.
Canada retaliates with tariffs on US goods
Canadian Prime Minister Justin Trudeau has also announced plans to respond. Canada will impose a 25% tariff on $100 billion of American goods, with immediate duties on $30 billion in US imports. The Canadian government aims to target high-volume imports that have local alternatives.
Former Finance Minister Chrystia Freeland proposed a 100% tariff on Tesla vehicles, though the final measures are yet to be confirmed. Natural Resources Minister Jonathan Wilkinson stated that the focus will be on goods that can be easily sourced within Canada. The US administration has warned Canada that any retaliation could result in even higher tariffs, raising the risk of a trade war.
China to file WTO complaint and take countermeasures
China’s Ministry of Commerce has vehemently opposed the US tariffs and plans to file a complaint with the World Trade Organization. A government spokesperson confirmed that China would take further countermeasures to protect its economic interests. However, details on specific retaliatory actions have not yet been disclosed.
Meanwhile, market reactions have been swift. After the announcement, Bitcoin fell below $100,000 but has since recovered, trading at $100,284. The tariffs are set to take effect on Tuesday, leaving little time for negotiations to prevent further economic tensions.