Photo credit: arstechnica.com
New tariffs imposed by President Trump on Canada and Mexico took effect today, marking a significant shift in trade relations. Concurrently, an executive order has increased tariffs on China from 10 percent to 20 percent. In response to these moves, Canada, Mexico, and China have all announced retaliatory actions, leading to a sharp decline in global stock markets.
Various industry stakeholders have raised concerns that these tariffs will drive up prices for a range of consumer goods, including automobiles, groceries, and electronic devices.
Canada has been significantly impacted by these tariffs, facing a 10 percent tax on energy exports to the United States while other goods are now subject to a 25 percent tariff. In a show of defiance, Prime Minister Justin Trudeau declared that Canada will implement 25 percent tariffs on over $100 billion worth of American products.
In a reciprocal move, China is set to impose new tariffs between 10 and 15 percent on American agricultural products beginning March 10. Additionally, Beijing has taken steps such as blacklisting 15 U.S. companies. Mexican President Claudia Sheinbaum has also indicated that she will reveal retaliation measures against the U.S. by Sunday.
Speaking at a news conference, Sheinbaum expressed her discontent, stating, “There’s no motive, reason or justification that supports this decision that will affect our people and nations.” She emphasized Mexico’s desire for “dialogue, with reasoning and rationality,” while indicating a commitment to seek a negotiated resolution.
Trudeau Calls Tariffs “Unwise”
In remarks about the tariffs, Trudeau criticized the decision, calling it “a very dumb thing to do,” asserting that Canada will not “back down from a fight.” He reached out to the American public, saying, “We don’t want this, but your government has chosen to do this to you.”
The rationale behind Trump’s executive orders centers around accusations that Canada facilitates the drug trade, Mexico is responsible for a wave of illegal immigration and drug trafficking, and China is a source of synthetic opioids, including fentanyl.
Source
arstechnica.com