President Donald Trump announced broad tariffs Saturday on major US trading partners Canada, Mexico and China, claiming a ‘major threat’ from illegal immigration and drugs — a move that sparked promises of retaliation.
Canadian and Mexican exports to the United States will face a 25 per cent tariff starting Tuesday, although energy resources from Canada will have a lower 10 per cent levy.
Goods from China, which already face various rates of duties, will see an additional 10 per cent tariff.
Trump’s orders also suspended exemptions allowing low-value imports from the three countries to enter the US duty-free.
China’s commerce ministry said in a statement it would take ‘corresponding countermeasures’ and file a claim against Washington at the World Trade Organisation.
Mexican president Claudia Sheinbaum announced that her country would impose retaliatory tariffs.
Sheinbaum said she had told her economy minister ‘to implement Plan B that we have been working on, which includes tariff and non-tariff measures in defence of Mexico’s interests.’
Canadian prime minister Justin Trudeau — who spoke with Sheinbaum — separately said his country would hit back with 25 per cent levies of its own on select American goods worth Can$155 billion (US$106.6 billion), with a first round on Tuesday followed by a second one in three weeks.
‘We’re certainly not looking to escalate. But we will stand up for Canada, for Canadians, for Canadian jobs,’ he said, as he warned of a fracture in longstanding Canada-US ties.
British Columbia premier David Eby announced that his province would specifically retaliate against ‘red’ US states led by members of Trump’s Republican Party.
On Sunday, the finance minister of Japan — a major US trade partner — said they were ‘deeply concerned about how these tariffs could affect the world’s economy.’
This week, he also pledged to impose future duties on the European Union.
He has also promised tariffs on semiconductors, steel, aluminium, oil and gas.
‘Tariffs are a powerful, proven source of leverage for protecting the national interest,’ the White House said.
‘The tariff action announced today makes clear that our friends, neighbours and Free Trade Agreement partners are in the line of fire,’ said Wendy Cutler, vice-president at the Asia Society Policy Institute and a former US trade negotiator.
‘The move today is an opening salvo on the tariff front,’ she told AFP.
Economic integration between the United States, Mexico and Canada — who share a trade pact — means stiff tariffs will have ‘a strong and immediate impact’ in all three countries, she said.
Imposing sweeping tariffs on the three biggest US trading partners in goods carries risks for Trump, who won November’s election partly due to public dissatisfaction over the economy.
The tariffs are also expected to hit the auto industry hard, since automakers and suppliers produce components throughout the region.
Analysts have warned that hiking import taxes on crude oil from countries like Canada and Mexico threaten US energy prices too.
Nearly 60 per cent of US crude oil imports are from Canada, according to a Congressional Research Service report.
