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The war on tariffs: Canada, Mexico and China respond to Trump

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Published

8 mesi ago

2 Febbraio 2025

Bre-news

Latest news – update 9.40pm – Canada has also decided to sue the United States, after China, at the World Trade Organisation over tariffs.

The tariff war triggered by Trump has begun: Trudeau and Sheinbaum announce retaliatory measures, Beijing turns to the WTO

Canada, Mexico and China respond to the tariffs imposed by US President Donald Trump on goods imported into the US. Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum announced economic retaliation measures, while China’s Ministry of Commerce said it will file a complaint with the World Trade Organisation (WTO), threatening as yet unspecified countermeasures.

Canada imposes duties of more than EUR 100 billion

The Canadian government decided to react with 25% tariffs on US goods with a total value of 155 billion Canadian dollars (about 102.8 billion euro). In addition, energy imported from the US, including oil, natural gas, and electricity, will be taxed at a 10% rate. Trudeau openly criticised the White House policy, warning that Trump’s tariffs will lead to higher prices for American consumers and divide the two countries instead of strengthening trade ties. He then called on Canadian citizens to prefer domestic products over US products.

Mexico rejects Trump’s accusations

Mexico also reacted harshly. President Claudia Sheinbaum announced on X that she had instructed her economy minister to implement new tariffs to protect the country’s interests. Sheinbaum also rejected White House accusations that the Mexican government has links to criminal organisations, calling them slander and denying any possibility of US interference on Mexican soil.

Sheinbaum went on to directly attack the Trump administration on the drug issue: ‘If the United States wants to seriously address the problem of fentanyl use, it should focus on selling drugs in its cities and laundering drug-related money, rather than shifting responsibility to Mexico.

China’s position

The Chinese government has chosen the diplomatic route, announcing that it will file a complaint with the WTO and implement ‘corresponding countermeasures’. Beijing has not yet given details of the possible actions, but the move indicates a willingness to directly counter the trade policies of the new US administration.

Risk of price increases in the US

The Trump administration claims that tariffs are a tool to limit the flow of illegal immigrants and drugs into the US. However, according to CNN, this policy is likely to result in significant price increases for American consumers, with price hikes on consumer products such as avocados, sneakers and cars.

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