Trump’s Tariffs Spark Global Trade Disputes

U.S. President Donald Trump’s newly imposed 25% tariffs on imports from Mexico and Canada took effect on Tuesday, alongside a doubling of duties on Chinese goods to 20%, igniting fresh trade disputes with the United States’ top three trading partners.

The tariff measures, which impact nearly $2.2 trillion in annual U.S. trade, were implemented at 12:01 a.m. EST (0501 GMT). The move follows Trump’s accusations that Mexico, Canada, and China have failed to take adequate action to curb the flow of fentanyl and its precursor chemicals into the United States.

China swiftly retaliated after the deadline, announcing 10%-15% additional tariffs on select U.S. imports from March 10, along with new export restrictions targeting designated American entities. The escalation signals a potential deepening of global trade tensions, with significant implications for international markets and economic stability.

Canada and Mexico, which have enjoyed a virtually tariff-free trading relationship with the U.S. for three decades, were poised to immediately retaliate against their longtime ally.

Canadian Prime Minister Justin Trudeau said Ottawa would respond with immediate 25% tariffs on C$30 billion ($20.7 billion) worth of U.S. imports and another C$125 billion ($86.2 billion) if Trump’s tariffs were still in place in 21 days. He said previously that Canada would target American beer, wine, bourbon, home appliances and Florida orange juice.

“Tariffs will disrupt an incredibly successful trading relationship,” Trudeau said, adding that they would violate the U.S.-Mexico-Canada free trade agreement signed by Trump during his first term.

Ontario Premier Doug Ford told NBC that he was ready to cut off shipments of nickel and transmission of electricity from his province to the U.S. in retaliation.

Mexican President Claudia Sheinbaum was expected to announce her response during a morning news conference in Mexico City on Tuesday, the country’s economy ministry said.

The extra 10% duty on Chinese goods adds to a 10% tariff imposed by Trump on February 4 to punish Beijing over the U.S. fentanyl overdose crisis. The cumulative 20% duty also comes on top of tariffs of up to 25% imposed by Trump during his first term on some $370 billion worth of U.S. imports.

Some of these products saw U.S. tariffs increase sharply under former president Joe Biden last year, including a doubling of duties on Chinese semiconductors to 50% and a quadrupling of tariffs on Chinese electric vehicles to over 100%.

The 20% tariff will apply to several major U.S. consumer electronics imports from China previously untouched by prior duties, including smartphones, laptops, videogame consoles, smartwatches, speakers and Bluetooth devices.

China’s new tariffs announced on Tuesday targeted a wide range of U.S. agricultural products including certain meats, grains, cotton, fruit, vegetables and dairy products.

Beijing also placed 25 U.S. firms under export and investment restrictions on national security grounds. Ten of these firms were targeted for selling arms to Taiwan.

China’s commerce ministry said the U.S. tariffs violated World Trade Organization rules and “undermine the basis for economic and trade cooperation between China and the U.S.”

REUTERS