US Tariffs on Canada, Mexico, and China Ignite Major Trade Wars
Tensions between the United States and its top trading partners reached new heights on Tuesday, as the U.S. officially imposed tariffs on imports from Canada, Mexico, and China. These levies came into force after President Donald Trump let a key deadline pass without securing a deal with either Canada or Mexico—two nations he had previously threatened with blanket tariffs over immigration and drug trafficking issues.
The White House argues these measures will help combat the flow of drugs like fentanyl into the U.S. However, critics say the duties affecting more than $918 billion in imports will likely increase prices for everyday goods. On Monday, Trump also signed an order raising an existing 10% tariff on Chinese imports to 20%, adding to a series of levies targeting Chinese goods.
Beijing quickly denounced Washington’s actions, calling them a “unilateral imposition of tariffs.” China responded by announcing 10% and 15% duties on a range of American farm products, from chicken to soybeans, which will begin next week. Meanwhile, Canada and Mexico pledged their own retaliatory measures.
Economists caution that such tariffs could push consumer prices higher while dragging down economic growth. Asian markets reacted negatively on Tuesday, with Tokyo’s Nikkei falling more than 2% and Hong Kong’s Hang Seng dropping 1.5%.
Trump maintains that countries like Canada and Mexico can avoid tariffs by relocating their manufacturing to the United States, though this questions whether that is realistic in the short term. Despite rolling back several policies introduced by the previous administration, the president’s latest tariff moves have alarmed businesses, farmers, and foreign governments.