Canadian, Mexican and Chinese language flags.
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U.S. President Donald Trump on Saturday imposed long-threatened tariffs on imports from Canada, Mexico and China — and it did not take lengthy for the international locations to reply.
Trump signed an order slapping 25% tariffs on items from Mexico and Canada, and a ten% responsibility on Chinese language imports, as a result of begin on Tuesday. Vitality assets from Canada face a decrease, 10% tariff to “decrease any disruptive results we would have on gasoline and residential heating oil costs,” based on a senior administration official.
Within the govt order, Trump stated that if the international locations — the U.S.’s three-largest buying and selling companions — retaliate, it could possibly be met with an “enhance or increase in scope” of the duties already imposed.
In a put up on X, Trump stated the duties had been imposed “due to the foremost risk of unlawful aliens and lethal medicine killing our Residents, together with fentanyl.”
The U.S. does about $1.6 trillion in enterprise annually with Canada, Mexico and China. The tariffs are anticipated for use as each bargaining chips and strategies to impact overseas coverage modifications — particularly concerning immigration and drug commerce points — by the Trump administration.
Response from one of many three international locations was swift and decisive, whereas the others appeared to take extra of a wait-and-see strategy to Trump’s tariffs. Here’s a have a look at their responses.
Canada
Canadian Prime Minister Justin Trudeau slapped retaliatory tariffs of 25% towards $155 billion of U.S. items quickly after the Trump tariffs had been introduced.
He stated duties on $30 billion price of U.S. items can be imposed on Tuesday, with tariffs on an extra $125 billion price of merchandise are as a result of be launched in 21 days, “to permit Canadian firms and provide chains to hunt to search out options.”
“Just like the American tariffs, our response may also be far-reaching and embrace on a regular basis objects corresponding to American beer, wine and bourbon, fruits and fruit juices, together with orange juice, together with greens, fragrance, clothes and sneakers,” Trudeau stated in a press convention on Saturday night. “It will embrace main client merchandise like family home equipment, furnishings and sports activities tools, and supplies like lumber and plastics, together with a lot, rather more.”
Canada’s Prime Minister Justin Trudeau speaks, flanked by (from L) Minister of Public Security David McGuinty, Minister of International Affairs Melanie Joly and Minister of Finance and Intergovernmental Affairs Dominic LeBlanc, throughout a information convention Feb. 1, 2025.
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Addressing Americans immediately, Trudeau added: “It is a alternative that, sure, will hurt Canadians, however past that, it’ll have actual penalties for you, the American individuals.”
Retaliatory tariffs are anticipated to additional exacerbate value hikes in each the U.S. and elsewhere. The worth of every little thing from automobiles and electronics to toys and meals is anticipated to be impacted.
Trudeau added that “it would not must be this fashion.”
“Sure, we have had our variations previously, however we have at all times discovered a strategy to get previous them. As I’ve stated earlier than, if President Trump needs to usher in a brand new golden age for the US, the higher path is to companion with Canada, to not punish us,” he stated.
Mexico
Mexico additionally vowed retaliation following the information, though didn’t reveal specifics.
President Claudia Sheinbaum slammed Trump’s tariffs and stated she had instructed the secretary of the financial system to “implement the Plan B we now have been engaged on, which incorporates tariff and non-tariff measures in protection of Mexico’s pursuits.”
In a lengthy put up on X, the president added: “We categorically reject the White Home’s slander of the Authorities of Mexico alleging alliances with legal organizations, in addition to any intention to intrude in our territory.”
“Mexico doesn’t need confrontation. We begin from the collaboration between neighboring international locations,” she stated within the put up, translated by NBC. “Mexico not solely doesn’t need fentanyl to achieve the US, it doesn’t need it to achieve anyplace.”
“We should work collectively in a complete method, however at all times below the ideas of shared accountability, mutual belief, collaboration and above all, respect for sovereignty, which is non-negotiable. Coordination, sure; subordination, no,” she added.
China
China stated it might file a lawsuit with the World Commerce Group in response to the duties, and “take mandatory countermeasures.”
“The U.S.’s unilateral tariff hike severely violates WTO guidelines, does nothing to resolve its personal points, and disrupts regular financial and commerce cooperation between China and the U.S.,” the Chinese language Ministry of Commerce stated in a press release Sunday, based on an NBC translation.
“In response to this wrongful motion, China will file a lawsuit with the WTO and take mandatory countermeasures to firmly safeguard its rights and pursuits.” China has complained to the WTO over tariffs earlier than, notably concerning the EU’s tariffs on Chinese language EVs final yr.
The truth that China stopped wanting quick escalation has raised hopes that there could possibly be some room to keep away from an all-out commerce struggle between the 2 international locations. The decrease, 10%-tariffs imposed on Chinese language-made items might also be a aid given repeated threats made by Trump on the marketing campaign path to impose duties of 60% or extra on imports from the nation.
In its assertion, China pushed again on Trump’s feedback about fentanyl, describing it as a “home concern.”
“China urges the U.S. to take an goal and rational strategy to its home points, together with fentanyl, fairly than resorting to tariff threats towards different international locations,” it stated.
Artificial opioid fentanyl is an addictive drug that causes many hundreds of overdose deaths annually within the U.S. The chemical substances wanted to make the drug are largely produced in China and Mexico. Washington and Beijing had beforehand agreed to cooperate on the problem.
‘World commerce struggle
In a be aware on Sunday, Paul Ashworth, Capital Economics’ chief North America economist, stated the tariffs had been “simply the primary strike in what might develop into a really harmful world commerce struggle.”
He stated he expects European Union imports to be focused within the subsequent couple of months, with common tariffs — a lot heralded by Trump on the marketing campaign path — anticipated in April.
The financial affect can be vital for all international locations concerned, based on Ashworth.
“Since exports to the U.S. account for round 20% of their GDP, as we speak’s tariffs might plunge each the Canadian and Mexican economies into recession later this yr,” he wrote.
“The ensuing surge in U.S. inflation from these tariffs and different futures measures goes to return even sooner and be bigger than we initially anticipated.”
— CNBC’s Tanaya Macheel, Kevin Breuninger and Jeff Cox contributed to this report.