US President Donald Trump on Saturday announced broad tariffs 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 US would face a 25 percent tariff starting tomorrow, although energy resources from Canada would have a lower 10 percent levy.
Goods from China, which already face various rates of duties, would see an additional 10 percent tariff.
Photo: AFP
Trump’s orders also suspended exemptions allowing low-value imports from the three countries to enter the US duty-free.
The announcement threatens upheaval across supply chains, from energy to cars to food.
Trump invoked the International Emergency Economic Powers Act in imposing the tariffs, with the White House saying that “the extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl, constitutes a national emergency.”
The Chinese Ministry of Commerce said in a statement that it would take “corresponding countermeasures” and file a claim against Washington at the WTO.
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 defense of Mexico’s interests.”
Canadian Prime Minister Justin Trudeau — who spoke with Sheinbaum — separately said his country would hit back with 25 percent levies of its own on select US goods worth C$155 billion (US$106.7 billion), with a first round tomorrow 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.
Trump has repeatedly expressed his approval of tariffs as a policy measure, and has signaled that Saturday’s action could be the first volley in further trade conflicts to come.
Last week, he also pledged to impose duties on the EU.
He has also promised tariffs on semiconductors, steel, aluminum, oil and gas.
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