Mexico plans response as US tariffs disrupt trade, while China and Canada impose countermeasures.
\n Beijing
\nChina and Canada announced retaliatory measures on Tuesday after US President Donald Trump imposed sweeping new tariffs on imports from China, Canada, and Mexico, escalating fears of a broader trade war.
\nThe US tariffs, which took effect at midnight, include 25% levies on goods from Canada and Mexico, and 20% tariffs on imports from China, doubling the rate imposed last month.
\nThe duties impact over $918 billion worth of imports from America\u2019s two largest trading partners.
\nChina hits back with new tariffs, export restrictions
\nChina responded swiftly, imposing 10%-15% additional tariffs on a range of US agricultural and food products and placing 25 American firms under export and investment restrictions on national security grounds. Among these, 10 companies were targeted for selling arms to Taiwan, which China claims as its own territory.
\nThe new US tariffs\u2014an extra 10% duty on Chinese goods\u2014took effect at 0501 GMT on March 4, bringing the total tariff rate on affected goods to 20%.
\nThe White House has justified the move as a response to China\u2019s alleged role in supplying chemicals used in fentanyl production, a charge Beijing has repeatedly denied, calling it \u201cfentanyl blackmail.\u201d
\nChina\u2019s finance ministry announced that starting March 10, Beijing will impose an additional 15% tariff on U.S. chicken, wheat, corn, and cotton, alongside a 10% duty on US soybeans, sorghum, pork, beef, aquatic products, fruits, vegetables, and dairy.
\nIn a statement, China\u2019s commerce ministry condemned the US tariffs, calling them a serious violation of World Trade Organization (WTO) rules.
\n\u201cThe US\u2019s unilateral tariff measures seriously violate WTO rules and undermine the basis for economic and trade cooperation between China and the US,\u201d the statement read. \u201cChina will firmly safeguard its legitimate rights and interests.\u201d
\nCanada and Mexico prepare retaliation
\nCanada also announced immediate 25% tariffs on C$30 billion ($20.7 billion) worth of US goods, including beer, wine, bourbon, home appliances, and Florida orange juice.
\nCanadian Prime Minister Justin Trudeau warned that if Trump\u2019s tariffs remained in place for 21 days, Ottawa would expand its countermeasures to an additional C$125 billion ($86.2 billion) of US imports.
\n\u201cTariffs will disrupt an incredibly successful trading relationship,\u201d Trudeau said, adding that the measures violate the United States-Mexico-Canada Agreement (USMCA), which Trump signed during his first term.
\nMeanwhile, Mexican President Claudia Sheinbaum was expected to announce her government\u2019s response later Tuesday, according to the country\u2019s economy ministry.
\nMarkets and businesses react to trade war fears
\nThe escalating trade conflict sent financial markets tumbling. Asian stock markets opened sharply lower, with Japan\u2019s Nikkei index down more than 2% and Hong Kong\u2019s Hang Seng index dropping 1.5%.
\nBusinesses in the United States and abroad have warned of widespread disruption if Trump continues his aggressive tariff strategy.
\nUS consumers and economy brace for impact
\nSince taking office, Trump has focused on increasing tariffs on China, Canada, and Mexico, arguing that these measures will curb illegal drug flows into the US and secure economic concessions from trading partners.
\nHowever, economists warn that the new tariffs could have serious economic consequences for American consumers. The Peterson Institute for International Economics estimates that a 25% tariff on Canada and Mexico and a 10% tariff on China would amount to the largest tax increase in at least a generation, costing the typical US household over $1,200 per year.
\nWhile Trump has pledged to lower prices for US consumers, economists argue that tariffs could instead drive costs higher across key industries, including technology, manufacturing, and agriculture.
\nThe 20% tariff imposed on China includes several major US consumer electronics imports, such as smartphones, laptops, video game consoles, smartwatches, and Bluetooth devices, which had previously been left untouched.
\nTrump has vowed to introduce additional \u201creciprocal\u201d tariffs on countries that impose their own levies on US goods, stating that these could take effect as early as next month.<\/p>\n","protected":false},"excerpt":{"rendered":"
Mexico plans response as US tariffs disrupt trade, while China and Canada impose countermeasures. Beijing China and Canada announced retaliatory measures on Tuesday after US President Donald Trump imposed sweeping new tariffs on imports from China, Canada, and Mexico, escalating fears of a broader trade war. The US tariffs, which took effect at midnight, include […]<\/p>\n","protected":false},"author":2,"featured_media":465225,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":{"0":"post-465196","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"yoast_head":"\n