Washington, DC:
As US President Donald Trump’s tariff hike for Mexico, Canada, and China kicks in on Tuesday, Ottawa and Beijing are already ready with countermeasures aimed at safeguarding their rights and interests. Canada will slap tariffs on US imports beginning Tuesday in response to levies pledged by America, Prime Minister Justin Trudeau said on Monday.
As part of countermeasures against Trump’s action, Beijing is also likely to target US agricultural and food products, China’s backed Global Times newspaper reported.
Mexican President Claudia Sheinbaum has also vowed to respond to Trump’s measures, saying, “We have a plan B, C, D.”
Canada To Impose 25 Per Cent Tariffs On The US
Canadian Prime Minister Trudeau said Monday that “there is no justification” for Washington’s actions and vowed to slap tariffs on US imports beginning Tuesday.
“Because of the tariffs imposed by the US, Americans will pay more for groceries, gas and cars, and potentially lose thousands of jobs,” Trudeau said.
“Tariffs will disrupt an incredibly successful trading relationship. They will violate the very trade agreement that was negotiated by President Trump in his last term,” he added.
Trudeau said his country will retaliate by putting 25 per cent tariffs on American goods worth $155 billion Canadian over the course of 21 days, starting with taxes on goods worth $30 billion Canadian after midnight Tuesday.
China Vows Countermeasures
China’s commerce ministry on Tuesday voiced opposition against a U.S. decision to impose tariffs on Chinese products related to fentanyl and other issues, vowing countermeasures that it said were aimed at safeguarding its rights and interests.
The US has “shifted the blame” and is using its problems with deadly drug fentanyl as an excuse to impose tariffs, the ministry said in a statement.
The US has argued that China supplies chemicals used in fentanyl production. China has denied wrongdoing.
China urges the US to “immediately withdraw” its unilateral tariff measures that are “unreasonable and groundless, harmful to others,” the ministry said.
Mexico Promises Response
Mexico’s economy ministry said that there would be no public response until President Claudia Sheinbaum’s regular morning press conference on Tuesday. After avoiding the first round of Trump’s tariffs by striking a last-minute deal to send thousands of troops to its northern border, Mexico has stepped up anti-drug efforts and hinted at new measures on imported Chinese goods.
On Monday, President Sheinbaum went into waiting to see what Trump would say. “It’s a decision that depends on the United States government, on the United States president,” Sheinbaum said ahead of Trump’s statement. “So whatever his decision is, we will make our decisions and there is a plan, there is unity in Mexico.”
Trump Tariffs
US President Donald Trump said 25 per cent tariffs on goods from Mexico and Canada will take effect from Tuesday, sparking renewed fears of a North American trade war that already showed signs of pushing up inflation and hindering growth. He also reaffirmed that he will increase tariffs on all Chinese imports to 20 per cent from the previous 10 per cent levy to punish Beijing for failing to halt shipments of fentanyl to the US
The Trump administration remains confident that tariffs are the best choice to boost US manufacturing and attract foreign investment.
Meanwhile, legendary investor Warren Buffett slammed President Trump’s move and said tariffs over time serve as a tax on goods and could raise prices for consumers.
“Tariffs are actually – we’ve had a lot of experience with them – they’re an act of war, to some degree,” Buffett said in an interview with CBS that aired on Sunday.