China and Canada announced retaliatory measures on Tuesday after U.S. tariffs took effect overnight, escalating trade tensions and rattling global markets. President Trump’s new tariffs include a 25% levy on most imports from Canada and Mexico, with an additional 10% tariff on Canadian energy exports. Tariffs on Chinese goods were increased from 10% to 20%. Beijing responded by slapping additional tariffs of 10-15% on a variety of U.S. agricultural imports, including chicken, pork, soy and beef, starting next week, China’s finance ministry announced.
Canadian Prime Minister Justin Trudeau, meanwhile, said Ottawa would impose immediate 25% tariffs on more than $20 billion worth of U.S. imports. Tariffs on an additional $86 billion worth of products will take effect in 21 days. “Our tariffs will remain in place until the U.S. trade action is withdrawn,” Trudeau said, adding his government was looking into non-tariff measures if the U.S. did not reverse course.
Trump defended the tariffs, arguing they would punish Canada and Mexico — the two largest trade partners to the U.S.— for fentanyl trafficking. He also said the move would encourage car manufacturers and other businesses to move their production to the United States. “I would just say this to people in Canada or Mexico: if they’re going to build car plants, the people that are doing them are much better off building here, because we have the market where they sell the most,” Trump told reporters at the White House.
Credit: NPR