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, because of begin on Tuesday. Vitality sources from Canada face a decrease, 10% tariff to “decrease any disruptive results we would have on gasoline and residential heating oil costs,” in accordance with a senior administration official.
Within the govt order, Trump mentioned that if the international locations — the U.S.’s three-largest buying and selling companions — retaliate, it may very well be met with an “improve or broaden in scope” of the duties already imposed.
In a post on X, Trump mentioned the duties had been imposed “due to the main risk of unlawful aliens and lethal medication killing our Residents, together with fentanyl.”
The U.S. does about $1.6 trillion in enterprise every year with Canada, Mexico and China. The tariffs are anticipated for use as each bargaining chips and strategies to impact international coverage adjustments — 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 method to Trump’s tariffs. Here’s a take 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 have been introduced.
Canada’s Prime Minister Justin Trudeau speaks, flanked by (from L) Minister of Public Security David McGuinty, Minister of Overseas Affairs Melanie Joly and Minister of Finance and Intergovernmental Affairs Dominic LeBlanc, throughout a information convention Feb. 1, 2025.
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He mentioned duties on $30 billion value of U.S. items can be imposed on Tuesday, with tariffs on an extra $125 billion value of merchandise are because of be launched in 21 days, “to permit Canadian corporations and provide chains to hunt to search out alternate options.”
“Just like the American tariffs, our response can even be far-reaching and embrace on a regular basis gadgets akin to American beer, wine and bourbon, fruits and fruit juices, together with orange juice, together with greens, fragrance, clothes and sneakers,” Trudeau mentioned in a press convention on Saturday night. “It will embrace main shopper merchandise like family home equipment, furnishings and sports activities tools, and supplies like lumber and plastics, together with a lot, way more.”
Addressing Americans immediately, Trudeau added: “This can be 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 value of all the pieces from vehicles and electronics to toys and meals is expected to be impacted.
Trudeau added that “it does not need to be this manner.”
“Sure, we have had our variations previously, however we have all the time discovered a method to get previous them. As I’ve mentioned earlier than, if President Trump desires to usher in a brand new golden age for the USA, the higher path is to associate with Canada, to not punish us,” he mentioned.
Mexico
Mexico additionally vowed retaliation following the information, though didn’t reveal specifics.
President Claudia Sheinbaum slammed Trump’s tariffs and mentioned she had instructed the secretary of the economic system to “implement the Plan B we have now been engaged on, which incorporates tariff and non-tariff measures in protection of Mexico’s pursuits.”
Mexico’s President Claudia Sheinbaum gestures as she speaks about U.S. President Donald Trump’s insurance policies throughout a press convention on the Nationwide Palace, in Mexico Metropolis, Mexico, January 21, 2025.
Henry Romero | Reuters
In a long post 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 intervene in our territory.”
“Mexico doesn’t need confrontation. We begin from the collaboration between neighboring international locations,” she mentioned within the submit, translated by NBC. “Mexico not solely doesn’t need fentanyl to succeed in the USA, it doesn’t need it to succeed in anyplace.”
“We should work collectively in a complete method, however all the time beneath the rules of shared accountability, mutual belief, collaboration and above all, respect for sovereignty, which is non-negotiable. Coordination, sure; subordination, no,” she added.
China
China mentioned it could file a lawsuit with the World Commerce Group in response to the duties, and “take vital countermeasures.”
“The U.S.’s unilateral tariff hike significantly 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 mentioned in an announcement Sunday, in accordance with an NBC translation.
“In response to this wrongful motion, China will file a lawsuit with the WTO and take vital countermeasures to firmly safeguard its rights and pursuits.” China has complained to the WTO over tariffs earlier than, notably regarding the EU’s tariffs on Chinese EVs final yr.
The truth that China stopped in need of immediate escalation has raised hopes that there may very well be some room to keep away from an all-out commerce warfare between the 2 international locations. The decrease, 10%-tariffs imposed on Chinese language-made items may additionally be a reduction 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 subject.”
“China urges the U.S. to take an goal and rational method to its home points, together with fentanyl, quite than resorting to tariff threats towards different international locations,” it mentioned.
Artificial opioid fentanyl is an addictive drug that causes many 1000’s of overdose deaths every year within the U.S. The chemical compounds wanted to make the drug are largely produced in China and Mexico. Washington and Beijing had previously agreed to cooperate on the difficulty.
‘World commerce warfare
In a observe on Sunday, Paul Ashworth, Capital Economics’ chief North America economist, mentioned the tariffs have been “simply the primary strike in what might turn out to be a really harmful international commerce warfare.”
He mentioned 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 important for all international locations concerned, in accordance with Ashworth.
“Since exports to the U.S. account for round 20% of their GDP, at this time’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 come back even sooner and be bigger than we initially anticipated.”
— CNBC’s Tanaya Macheel, Kevin Breuninger and Jeff Cox contributed to this report.
