President Trump has imposed 25% tariffs on imports from Canada and Mexico, and doubled tariffs on Chinese goods to 20%, initiating new trade disputes. These measures could disrupt $2.2 trillion in annual trade relations. Canada and Mexico plan immediate retaliatory tariffs, while China has warned against US tariff violations of WTO rules.

President Donald Trump has initiated new trade conflicts by imposing a 25 percent tariff on all imports from Canada and Mexico, which took effect at 00:01 EST on Tuesday. Additionally, he has doubled the tariffs on Chinese goods to 20 percent, impacting trade with the top three trading partners of the United States. These actions could disrupt approximately $2.2 trillion in annual two-way trade, following Trump’s assertion that these countries have not sufficiently addressed the influx of fentanyl into the US.

In response to the tariffs, Canada and Mexico, which have maintained a largely tariff-free trade relationship with the US for over thirty years, are set to retaliate. Prime Minister Justin Trudeau announced immediate tariffs of 25 percent on $20.7 billion worth of US imports, with plans for further tariffs of $86.2 billion if Trump’s measures remain in place. Trudeau emphasized that these tariffs would undermine the recently established US-Mexico-Canada Agreement (USMCA).

Ontario Premier Doug Ford indicated he was prepared to halt shipments of nickel and electricity to the US in retaliation for the tariffs. Meanwhile, Mexican President Claudia Sheinbaum is expected to announce her country’s response shortly following the tariff implementation.

Regarding tariffs on China, Trump’s additional 10 percent duty compounds the previous 10 percent tariff enacted in February 2023 on imports tied to the fentanyl crisis. The newly cumulative 20 percent tariff will extend to major consumer electronics such as smartphones and laptops. Notably, tariffs on Chinese goods previously untouched will now be affected.

In retaliation, China announced new tariffs targeting a variety of US agricultural products. Analysts note the concern among small traders in China who depend heavily on trade margins that are now diminished by heightened tariffs. China’s Ministry of Commerce criticized the US actions as violations of World Trade Organization rules, further complicating economic relations between the two nations.

These recent developments in US trade policy signal a shift towards escalating trade tensions with Canada, Mexico, and China, potentially altering the landscape of international commerce and cooperation, threatening longstanding trade agreements and partnerships.

In summary, President Trump’s imposition of tariffs on Canada, Mexico, and China marks a significant escalation in the ongoing trade war, with substantial implications for US trade relationships. The immediate responses from these countries indicate a readiness to retaliate, raising concerns over potential economic repercussions. China’s criticism of US tariffs further complicates matters, suggesting a challenging path ahead for international trade relations.

Original Source: www.aljazeera.com

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