KEY POINTS
- China, Canada, and Mexico criticise the US tariffs, calling them protectionist and harmful to global trade.
- Trump’s administration announces a 25% duty on imports from Canada and Mexico and a 10% tariff on Chinese goods.
- China vows retaliatory measures and announces to challenge the tariffs at the WTO.
- Trudeau announces 25% levies on US imports, warning of economic fallout for American industries.
- Mexico’s President orders tariffs on US goods and hints at non-tariff measures.
WASHINGTON: China, Canada, and Mexico on Sunday condemned the latest round of sweeping US tariffs imposed by President Donald Trump, vowing to take countermeasures in response to what they described as protectionist policies that threaten global economic stability.
The Trump administration on Saturday announced fresh tariffs, imposing a 25% duty on imports from Canada and Mexico and a 10% tariff on Chinese goods starting Tuesday.
Trump signed three separate executive orders on the tariffs, vowing to keep the duties in place until what he described as the national emergency over the drug fentanyl and illegal immigration to the US ends.
Responding to concerns raised by oil refiners and Midwestern states, Trump imposed only a 10% duty on energy products from Canada, with Mexican energy imports facing the full 25% tariff.
A White House fact sheet said the tariffs would stay in place “until the crisis alleviated,” but gave no details on what the three countries would need to do to win a reprieve.
Trump’s move has heightened tensions and sparked concerns over its impact on global economic growth and inflation.
China on Sunday criticised the latest round of US tariffs and warned that trade wars have “no winners,” vowing to take countermeasures in response.
“There are no winners in a trade war or tariff war,” China’s foreign ministry said in a statement, adding that the additional duties would “inevitably affect and damage future bilateral cooperation.”
The Chinese government has pledged to take “corresponding countermeasures to resolutely safeguard our own rights and interests.”
Beijing will also challenge the tariffs at the World Trade Organisation (WTO), arguing that the US measures “seriously violate” international trade rules, China’s finance and commerce ministries said in a statement.
The commerce ministry said that Washington is engaged in “erroneous practices” and insisted that Beijing “firmly opposes” the latest tariffs.
The ministry reiterated its stance that the duties are “not only unhelpful in solving the US’s own problems but also undermine normal economic and trade cooperation.”
Call for dialogue
While Beijing has vowed retaliation, it has also adopted a measured tone, calling for diplomacy and negotiations to resolve trade tensions.
“China urges the US to correct its erroneous practices, meet China halfway, face up to its problems, have frank dialogues, strengthen cooperation, and manage differences on the basis of equality, mutual benefit, and mutual respect,” the commerce ministry said.
China has also dismissed the US’s linking of tariffs to the fentanyl crisis, arguing that it has made significant efforts to curb illegal drug flows. “Fentanyl is America’s problem,” a foreign ministry spokesperson said.
“The Chinese side has carried out extensive anti-narcotics cooperation with the United States and achieved remarkable results.”
Canada, Mexico announce retaliatory measures
The US tariffs have also triggered strong reactions from Canada and Mexico, with both nations announcing retaliatory measures.
Canadian Prime Minister Justin Trudeau said that his government would impose 25% levies on a range of US imports, affecting goods worth CAD 155 billion (USD 107 billion). Duties on CAD 30 billion worth of goods will take effect on Tuesday, the same day as the US tariffs, while the remaining CAD 125 billion will face tariffs in three weeks’ time.
The Canadian countermeasures target key American exports, including beer, wine, bourbon, fresh fruits, juices, clothing, sports equipment, and household appliances.
Trudeau warned that Trump’s actions would not only hurt Canada but also have severe repercussions for American workers and industries.
“Tariffs against Canada will put your jobs at risk, potentially shutting down American auto assembly plants and other manufacturing facilities,” Trudeau said during a press conference in Ottawa. “They will raise costs for you, including food at the grocery store and gas at the pump.”
Beyond tariffs, Canada is also exploring non-tariff responses, potentially involving restrictions on critical minerals and energy procurement.
Mexican President Claudia Sheinbaum has also responded with retaliatory measures, ordering tariffs on US goods in response to Trump’s 25% levy on all Mexican imports.
In a statement on social media platform X, Sheinbaum called for dialogue but insisted Mexico would defend its economic interests.
“I’ve instructed my economy minister to implement the Plan B we’ve been working on, which includes tariff and non-tariff measures in defence of Mexico’s interests,” she wrote. However, she did not specify which US products would be targeted.
The United States is Mexico’s largest trading partner, with US exports to Mexico exceeding USD 322 billion in 2023, while Mexican exports to the US amounted to more than USD 475 billion. Last year, Mexico surpassed China as the top destination for US exports.
Global economic concerns
Economists warn that the escalating trade war between the US, China, Canada, and Mexico could have significant economic consequences, including slowed global growth and increased inflationary pressures.
The retaliatory tariffs and uncertainty surrounding trade relations may also disrupt global supply chains and dampen investor confidence.
