In response to the United States tariffs announced by President Donald Trump on Saturday, both Canada and Mexico have initiated immediate retaliatory tariffs on American goods starting from tomorrow February 4.
China’s commerce ministry said it will file a complaint with the World Trade Organisation (WTO) and take corresponding countermeasures. The country is yet to state its counter tariff measures.
Not perturbed, Trump has said that Americans may feel economic “pain” from his tariffs on key trading partners.
“Will there be some pain? Yes, maybe (and maybe not!)” Trump wrote on Sunday in all capital letters on his Truth social media platform, a day after signing off on tariffs on Mexico, Canada and China.
“But we will Make America Great Again, and it will all be worth the price that must be paid,” he added.
Canada’s Prime Minister, Justin Trudeau, on Saturday night, imposed a 25 per cent tariffs on $155 billion worth of U.S. products with $30 billion on starting off tomorrow and $125 billion in 21 days to give Canadian businesses and supply chains time to look for alternatives.
Tariffs would apply to everyday items like American beer, wine, bourbon, fruits and fruit juices including orange juice alongside vegetables, perfumes, clothing and shoes. Major consumer products like home appliances, furniture and sports equipment as well as raw materials like lumber and plastics. He said they are also considering non-tariff measures including some relating to critical minerals, energy, procurement and other partnerships.
He expressed surprise as to why they are being targeted but said they have the tools to support businesses and citizens through this challenging time.
Yesterday, Mexico’s President, Claudia Sheinbaum, also ordered 25 per cent retaliatory tariffs. These actions stem from Trump’s accusations against these countries for not addressing issues related to illegal drugs and migration.
Mexico, China and Canada are the U.S’ three largest trade partners. Collectively, the trio accounted for 42 per cent of the nearly $3 trillion worth of goods the U.S imported worldwide last year. U.S exports to the three countries accounted for over 40 per cent of the $1.9 trillion worth of goods the U.S exported globally last year.
The tariffs and subsequent retaliation, have kickstarted a trade war that could significantly damage the economies of the countries involved with resulting ripple effects. Goods are projected to almost double in price immediately.
