WASHINGTON — Following President Donald Trump’s signing of executive orders imposing tariffs on products from Canada, Mexico, and China, the three nations have strongly criticized the decision and vowed to retaliate. U.S. allies Canada and Mexico have announced plans to impose their own tariffs in response to Trump’s actions, indicating potential economic disruptions among the closely intertwined trading partners. While China, a key competitor of the U.S., did not specify retaliatory tariffs, it has stated intentions to file a lawsuit with the World Trade Organization and implement necessary countermeasures.
Citing concerns over the influx of fentanyl and undocumented immigrants into the U.S., Trump has imposed a 25% tariff on imports from Mexico and Canada, with the exception of Canadian energy products facing a 10% tariff. Similarly, a 10% tariff has been applied to imports from China for similar reasons. The tariffs will go into effect on Tuesday, with some exceptions, and the White House has indicated they will remain until the situation improves, without further details provided.
Collectively, Mexico, Canada, and China constituted over 40% of total U.S. imports last year. Reciprocal tariff measures from these nations could lead to price hikes for consumers both domestically and internationally, impacting the costs of various goods such as food, electronics, and automobiles.
Among the leaders, Canadian Prime Minister Justin Trudeau has been the most detailed in outlining the country’s response. Trudeau has announced plans to retaliate against the U.S. tariffs by imposing a 25% tariff on $155 billion worth of American goods. This response includes immediate tariffs on $30 billion worth of goods starting Tuesday, with the remainder to be implemented in about three weeks to allow for adjustments in Canadian supply chains.
Trudeau emphasized the longstanding U.S.-Canada partnership and urged cooperation rather than punitive measures. He highlighted the wide range of American products that would be subject to tariffs, including beverages, fruits, clothing, and more. Trudeau also called on Canadians to support local products and reconsider travel plans to support the Canadian economy.
President Trump’s administration has not yet responded to Trudeau’s announcement. Meanwhile, Mexican President Claudia Sheinbaum has instructed… (the text is cut off here)***
The Secretary of the Economy instructed to carry out the Plan B, which involves implementing tariff and non-tariff measures to protect Mexico’s interests. Details of this plan have not been disclosed yet. In response to the tariffs, Sheinbaum criticized the White House’s accusations against the Mexican government and interference in their territory. She emphasized Mexico’s stance against drug trafficking, stating that they do not want drugs like fentanyl to reach any destination. She highlighted the importance of collaboration in combating criminal groups but emphasized that it should be based on shared responsibility, mutual trust, collaboration, and respect for sovereignty. She emphasized the need for coordination without subordination.
China expressed strong opposition to the tariffs, announcing that they would file a lawsuit with the World Trade Organization and take necessary measures to protect their rights. They urged the U.S. to correct its actions, seek mutual understanding, engage in dialogue, and manage differences based on equality and mutual respect.
The U.S. has blocked the appointment of appellate judges to the World Trade Organization, limiting its ability to mediate trade disputes internationally. However, China could use a lawsuit to garner support against U.S. tariffs. Trump justified his decision based on the threat of illegal drugs, including fentanyl, entering the U.S.
Both Mexico and China emphasized the need for the U.S. to address its domestic demand for fentanyl. China expressed concerns that the tariffs could impact counternarcotics cooperation. The top three import suppliers to the U.S. are China, Mexico, and Canada, with Mexico and Canada having longstanding economic ties with the U.S.
Trump’s executive order to impose tariffs on goods from these countries followed his campaign promises. He had previously imposed tariffs on Chinese goods due to unfair trade practices, leading to a trade war. The Biden administration maintained some of these tariffs. Despite China’s desire to avoid further conflict, the economic relationship remains strained.
In order to bounce back from the pandemic, it is anticipated that there will be internal pressure to take action. A fresh legislation that came into force on December 1 grants the Chinese government clear-cut power to levy retaliatory tariffs if a foreign nation enforces tariffs or other actions considered to breach international regulations. Analysts have cautioned that a renewed round of tariffs may have far-reaching effects beyond the economic sphere, potentially impacting bilateral national security and health initiatives.
