China Announces Tariffs in Response to Donald Trump’s Trade Actions
U.S. President Donald Trump has announced new tariffs on imports from Canada, Mexico, and China, triggering strong reactions from U.S. trading partners. The tariffs, set to take effect on Saturday (February 1), include a 25% levy on Canadian and Mexican imports and a 10% tariff on Chinese goods. Trump justified the move as an effort to curb illegal immigration, fentanyl smuggling, and boost U.S. manufacturing. However, trading partners argue the move will harm businesses and consumers on both sides.
Canada Vows ‘Forceful’ Response
Canadian Prime Minister Justin Trudeau has criticized Trump’s tariff decision, calling it “unjustified and harmful” for businesses and consumers on both sides of the border.
“We’re ready with a response—a purposeful, forceful but reasonable, immediate response. It’s not what we want, but if he moves forward, we will also act,” Trudeau said on Friday.
Reports suggest that Canada has prepared a list of retaliatory tariffs targeting U.S. exports, including Florida orange juice, with the potential to affect C$150 billion ($105 billion) worth of U.S. goods. However, Ottawa may conduct public consultations before finalizing the measures.
Trudeau dismissed Trump’s justification, stating that Canada contributes to less than 1% of fentanyl and illegal crossings into the U.S. He warned that the tariffs would lead to increased costs and potential job losses in both nations.
Mexico Prepares for Retaliation with ‘Cool-Headed’ Approach
Mexican President Claudia Sheinbaum took a measured stance, emphasizing that while Mexico prioritizes dialogue, it is prepared to defend its interests if necessary.
“Now it is very important that the Mexican people know that we are always going to defend the dignity of our people, we are always going to defend the respect of our sovereignty and a dialogue between equals, as we have always said, without subordination,” Sheinbaum stated.
Mexico had reportedly been in talks with Trump’s administration even before his return to office, and the government has drafted multiple response plans labeled ‘Plan A, Plan B, and Plan C.’ Sheinbaum previously warned that these tariffs could cost the U.S. 400,000 jobs and significantly impact consumer prices.
China Signals Retaliation
China has yet to reveal its full countermeasures but firmly opposed the new tariffs, hinting at potential retaliation.
“There is no winner in a trade war or tariff war, which serves the interests of neither side nor the world,” a spokesperson from the Chinese Embassy in Washington stated.
Beijing has historically responded to U.S. tariffs with countermeasures targeting crucial industries such as agriculture and technology. However, analysts suggest China may take a cautious approach this time, weighing its response amid broader economic and diplomatic considerations.
With tensions escalating, global markets are closely watching the trade dispute unfold, as businesses and consumers brace for potential economic consequences. The coming weeks will be critical in determining whether the involved nations opt for dialogue or deeper trade hostilities.