Canada, Mexico, and China have pledged to respond to the extensive new tariffs imposed on their exports to the United States by President Donald Trump.
The president announced that a 25% tariff on imports from Canada and Mexico, along with a 10% tax on Chinese products, would be implemented starting Tuesday, February 4, while Canadian energy imports would see a reduced tariff of 10%.
Trump defended these tariffs as necessary measures to address concerns over illegal immigration and drug trafficking, which are key issues in his political agenda.
He stated on Truth Social that the tariffs were enacted under the International Emergency Economic Powers Act (IEEPA) due to the significant threat posed by illegal immigration and drugs, including fentanyl.
The White House supported this rationale, asserting that the tariffs are intended to hold these countries accountable for their commitments to combat drug trafficking into the U.S.
In response, Canada, Mexico, and China announced their counteractions, with Canadian Prime Minister Justin Trudeau indicating that Canada would impose 25% tariffs on $155 billion worth of U.S. goods, including various consumer products.
The first $30 billion in tariffs would take effect on February 4, followed by the remaining $125 billion in 21 days.
Trudeau emphasized that Canada did not seek this confrontation but would firmly defend its interests, rejecting claims of being a security threat to the U.S. and reiterating commitments to border security funding.
In Mexico, President Claudia Sheinbaum dismissed U.S. claims linking her administration to drug cartels as "slander," urging the U.S. to concentrate on stopping the illegal flow of firearms and addressing domestic drug demand.
She directed her economy minister to impose retaliatory tariffs of 25% on U.S. products, asserting that dialogue, not tariffs, is the solution to problems.
Sheinbaum , firmly denied any government connections with criminal groups and criticized the U.S. for neglecting its own drug consumption and money laundering issues.
In response, China condemned the U.S. tariffs as unwarranted and announced plans for "necessary countermeasures" to protect its rights and interests, including a complaint to the World Trade Organization.
A spokesperson from the Chinese embassy in Washington remarked that trade and tariff wars yield no winners, emphasizing the detrimental impact on global trade.
Economists and industry groups are increasingly worried about the ramifications of these tariffs and retaliatory actions, predicting price hikes across various sectors such as automobiles, lumber, and food.
Organizations like the Canadian Chamber of Commerce and U.S. industry groups have raised alarms about potential economic disruptions and increased costs.
The U.S. auto industry faces significant risks, as auto parts often cross borders multiple times during manufacturing.
TD Economics estimates that the tariffs could increase the average price of a U.S. car by around $3,000, while a report from the Peterson Institute for International Economics warned that blanket tariffs on Canadian and Mexican goods could hinder growth and spur inflation across North America.
Despite these warnings, Trump indicated his willingness to escalate tariffs further if the affected nations retaliate..
Industry experts suggest that Trump might reconsider his stance if he can show advancements on his declared issues, especially regarding immigration and drug trafficking.
Nevertheless, with tariffs scheduled to be implemented on Tuesday, a new phase of global trade conflicts seems likely, which could jeopardize relations between the U.S. and its major trading partners.