Canada, Mexico and China have vowed to respond to new tariffs announced by President Donald Trump on their exports to the US.
Trump stated that a levy of 25% on Canadian and Mexican imports as well as an additional 10% tax on Chinese goods would come into force on Tuesday.
The US President said that the move was in response to his concerns about illegal immigration and drug trafficking – two of the main promises on which he was elected.
The White House said in a statement on X on Saturday, February 1, 2025, “Today’s tariff announcement is necessary to hold China, Mexico, and Canada accountable for their promises to halt the flood of poisonous drugs into the United States.”
Trump posted on his Truth Social platform that this was done through the International Emergency Economic Powers Act (IEEPA) because of the “major threat of illegal aliens and deadly drugs killing our Citizens, including fentanyl.”
The White House, explaining on Saturday why it was targeting its top trading partners, said that Mexican cartels were responsible for trafficking fentanyl, methamphetamine and other drugs.
It added that tariffs on Canada would remain until it “co-operates with the US against drug traffickers and on border security.”
Lastly, it said that China plays the “central role in the fentanyl crisis” with exports of the lethal synthetic painkiller.
The implementation of tariffs and the subsequent retaliation could mark the start of a new era of global trade wars.
In response to Trump’s announcement, both Canada and Mexico said that they were preparing similar tariffs on US goods, while China added it would take “necessary countermeasures to defend its legitimate rights and interests.”
In its announcement, the White House accused Mexico’s government of having “an intolerable alliance” with Mexican drug trafficking organisations.
In her response, Mexican President Claudia Sheinbaum called allegations that the Mexican government had alliances with criminal organisations “slander”.
Sheinbaum called on the US to do more to clamp down on the illegal flow of guns south to arm the cartels.
She voiced that her country is willing to work with the US, adding, “Problems are not resolved by imposing tariffs, but by talking.”
She has instructed her Economy Minister to respond with tariff and non-tariff measures.
They are expected to include retaliatory tariffs of 25% on US goods.
Canadian Prime Minister, Justin Trudeau said that his country will also respond.
“We don’t want to be here, we didn’t ask for this.
“But we will not back down in standing up for Canadians.”
Justin Trudeau
His government will impose 25% tariffs on $155bn worth of American goods – $30bn will come into force on Tuesday and another $125bn in 21 days.
Targeted items include American beer, wine, bourbon, fruits and fruit juices, vegetables, perfumes, clothing and shoes, as well as household appliances, sporting goods and furniture.
Lumber and plastics will also face levies.
Additionally, Trudeau pushed back on the suggestion that the shared border posed a security concern, saying less than 1% of fentanyl going into the United States comes from Canada.
Canada is America’s largest foreign supplier of crude oil. According to the most recent official trade figures, 61% of oil imported into the US between January and November last year came from Canada.
China To File Lawsuit Against US
Meanwhile, China said in a statement that it was strongly dissatisfied with the levies and “firmly opposes” them.
The 10% tax will be added over and above tariffs already imposed on China by Trump in his first term and by President Joe Biden.
It added that it would file a lawsuit with the World Trade Organization against the US for its “wrongful practice.”
A spokesperson at China’s Washington embassy, noted, “Trade and tariff wars have no winners.”
Last month, China’s Vice-Premier, Ding Xuexiang told the World Economic Forum in Davos, Switzerland that his country was looking for a “win-win” solution to trade tensions and wanted to expand its imports.
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