Trump Escalates Trade Wars with Steep Tariffs on Canada, Mexico and China

By Staff, Agencies

US President Donald Trump has imposed new tariffs on imports from Canada, Mexico and China, triggering fresh trade conflicts with the nation’s top trading partners.

As of Tuesday, a 25 percent tariff on imports from Mexico and Canada has taken effect, along with a doubling of duties on Chinese goods to 20 percent. The move follows Trump’s accusations that these countries have failed to curb the flow of fentanyl and its precursor chemicals into the US.

China responded immediately by announcing additional tariffs of 10-15 percent on certain US imports starting March 10, as well as new export restrictions on designated US entities. Canada and Mexico, long-time trade partners of the US, have also vowed to retaliate.

Canadian Prime Minister Justin Trudeau declared immediate 25 percent tariffs on $20.7 billion worth of US imports, with plans to extend the tariffs to $86.2 billion if Trump's duties remain in place for 21 days. Mexico’s President Claudia Sheinbaum was expected to announce countermeasures later on Tuesday.

The tariffs on Chinese goods add to a 10 percent duty imposed in February, part of Trump's efforts to penalize Beijing over the fentanyl crisis. They apply to key US imports, including consumer electronics such as smartphones, laptops and gaming consoles. In response, China has targeted US agricultural products and added 25 US entities to its trade restriction lists.

Economists warn that Trump's trade policies could significantly disrupt the integrated North American economy. The Canadian Chamber of Commerce criticized the tariffs, warning of potential recessions and job losses, while US automakers called for exemptions on vehicles meeting regional content requirements.

The financial markets reacted negatively, with global stocks tumbling and safe-haven bonds rallying. Both the Canadian dollar and Mexican peso fell against the US dollar.

Trump has maintained an aggressive approach to tariffs since taking office in January, reinstating levies on steel and aluminum and opening new trade investigations into lumber, digital services taxes, and copper imports. His "America First" trade agenda is expected to be a focal point of his upcoming address to Congress.