President Donald Trump has taken action by announcing new tariffs on China, Canada, and Mexico effective February 1st. The tariffs were signed into effect through an executive order. Trump had been threatening these tariffs for months and has now followed through.
In response to the US tariffs, Canada and Mexico have pledged to impose retaliatory tariffs. The Trump administration officially implemented a 25% tariff on goods from Canada and Mexico and a 10% tariff on goods from China. This move has sparked reactions from all three countries, with China promising “corresponding countermeasures.”
Economists anticipate that many businesses will pass on the increased costs from tariffs to consumers, potentially leading to price hikes in products such as electronics, groceries, and apparel.
The White House claims that these tariffs are in line with Trump’s campaign promises, particularly in addressing issues like the fentanyl crisis. Trump believes that tariffs on China could help combat this problem.
China, as a major electronics supplier to the US, could see implications on products like cellphones and computers due to the tariffs. The Chinese government has expressed its disapproval of the US tariffs and has vowed to uphold its national interests.
Canada and Mexico, two key trade partners with the US, have also been affected by the new tariffs. Both countries have announced plans to retaliate against the US tariffs, as they seek to protect their own interests in this escalating trade conflict.
The United States plans to impose 25% tariffs on C$155 billion (around $106 billion) worth of American goods, with some tariffs taking effect on Tuesday and others in three weeks. Mexico’s President, Claudia Sheinbaum, announced retaliatory tariffs on social media, instructing the economy minister to implement Plan B, consisting of tariff and non-tariff measures to safeguard Mexico’s interests.
In a statement on January 22, former President Trump threatened to impose tariffs on Russian imports if the country did not end the conflict in Ukraine promptly. He warned of imposing high taxes, tariffs, and sanctions on Russian goods sold to the U.S. and other countries. Despite Russia’s relatively low export volume to the U.S., potential tariffs could have minimal impact on American consumers.
Trump also issued a warning to Colombia after the country refused entry to deported migrants on two U.S. flights, threatening a 25% tariff that could increase to 50% within a week. Colombia’s President, Gustavo Petro, pledged to accept deported Colombians on civilian flights without stigmatizing them. The White House retracted the tariff threat but cautioned it could be reinstated if Colombia failed to uphold its obligations.
On November 30, Trump declared on social media that a 100% tariff would be imposed on the BRICS nations unless they committed to not introducing a competing currency to the U.S. dollar. The BRICS group comprises nine countries excluding China, with top imports to the U.S. including pharmaceuticals, crude oil, and household goods. However, no tariffs on the BRICS nations were announced by the Trump administration.
During a press conference on January 7, Trump stated that Denmark would face significant tariffs if it did not agree to transfer control of Greenland, an autonomous Danish territory, to the United States. While no further details or tariffs were implemented, reports indicated that Trump and Denmark’s Prime Minister discussed the issue, with the Danish premier emphasizing Greenland’s non-negotiable status. The U.S. predominantly imports medicinal products and machinery from Denmark.
