‘Global trade war’: Trump imposes tariffs on Mexico, Canada, and China

Washington: US President Donald Trump has announced new tariffs on goods from Mexico, Canada, and China, saying the countries need to stop the flow of fentanyl and, in the case of Mexico and Canada, illegal immigrants into the United States.

This move has sparked a trade conflict that could hurt global economic growth and increase inflation.

In response, both Mexico and Canada, the US’s top two trading partners, said they would impose their own tariffs. China also declared it would challenge Trump’s decision at the World Trade Organization (WTO) and take other countermeasures.

Trump issued three executive orders, imposing a 25% tariff on most imports from Mexico and Canada, and a 10% tariff on Chinese goods, starting Tuesday.

He said the tariffs would stay in place until the US sees an end to what he called a national emergency related to fentanyl, a deadly drug, and illegal immigration. However, the White House did not give clear details on how to resolve these issues or how long the tariffs would last.

To address concerns from oil refiners and states in the Midwest, Trump set a lower 10% tariff on energy products from Canada, while Mexico’s energy imports will face the full 25% tariff.

In response, Canadian Prime Minister Justin Trudeau announced that Canada would impose 25% tariffs on $155 billion worth of US goods. The tariffs would target products like beer, wine, lumber, and appliances, with $30 billion of them starting on Tuesday, and $125 billion more starting in 21 days.

Trudeau warned US citizens that these tariffs would likely increase the cost of groceries, gasoline, and other goods in the US. He also said US auto plants could be forced to shut down, and supplies of products like steel and aluminum would be limited. Trudeau urged Canadians to avoid travel to the US and to boycott US products.

Mexican President Claudia Sheinbaum also announced retaliatory tariffs, although she did not provide specific details. Both Canada and Mexico said they would work together to respond to Trump’s tariffs.

China’s government did not announce specific countermeasures but said it hoped to engage in talks with the US and manage the differences in a calm and rational manner. China also called for cooperation on issues like fentanyl.

The White House said the tariffs would remain in place “until the crisis is alleviated,” but it did not outline what actions the three countries would need to take for the tariffs to be lifted. While many Republicans supported Trump’s decision, industry groups and Democrats warned it could lead to higher prices for consumers.