Beijing, Mar. 4, (dpa/GNA) – China, Mexico and Canada have responded to new US tariffs that took effect on Tuesday by imposing retaliatory measures on imports from the United States, fuelling fears of a global trade war.
New US tariffs on goods from the three countries came into force on Tuesday.
Washington imposed an import fee of 25% on goods from Mexico and Canada and raised tariffs on Chinese products from 10% to 20%.
China announced on Tuesday that it was imposing new tariffs on key agricultural imports and imposing further restrictions on US companies.
Mexican President Claudia Sheinbaum announced retaliatory measures including import duties and other steps which she will reveal on Sunday.
“We need to keep calm and think clearly,” Sheinbaum said.
Hours before the US tariffs took effect at 0500 GMT Tuesday, Canadian Prime Minister Justin Trudeau said Canada would introduce matching 25% tariffs on up to C$155 billion (US$107 billion) worth of imports from the US if Washington proceeded with the tariffs.
The punitive tariffs on Canadian and Mexican imports mark a sharp escalation in trade tensions, raising fears of a North American trade war with unpredictable consequences for the global economy. The announcement sent stock markets tumbling.
In early February, the White House said the tariffs were in response to Canada, Mexico and China allowing illegal drugs to enter the US.
Trump then agreed to delay the planned trade restrictions for at least 30 days after Mexico and Canada made concessions, particularly regarding border security.
China says it is ready for trade war
Beijing’s Ministry of Commerce said that starting on March 10, China will impose a 15% tariff on chicken, wheat, corn and cotton from the US. Other agricultural products, including soybeans, pork and beef, will be subject to a 10% additional duty.
China also warned that more US companies would be added to its list of unreliable entities, potentially leading to restrictions or outright bans on doing business in China.
The White House justified the increase on tariffs on China by pointing to the continued smuggling of Chinese-manufactured fentanyl into the US.
Beijing condemned the move, saying that if the US wanted to start a tariff war, trade war or any other war, China would follow through to the end.
Foreign Ministry spokesman Lin Jian said China rejects the US decision and that the countermeasures are necessary to protect Chinese rights and interests.
Pressure, coercion and threats are not the right way to deal with China and Beijing, Lin said. He advised the US to return to the path of dialogue and cooperation.
Mexico and Canada stand firm
More than 80% of Mexican exports go to the US, with thousands of companies and millions of jobs depending on the trade partnership.
In a bid to appease Trump, Mexico recently extradited 29 individuals convicted of drug-related offences to the US. According to the US Department of Justice, these included former infamous cartel leader Rafael Caro Quintero.
But the steps were not enough to persuade Trump to drop his tariffs idea and Mexico will now retaliate.
Trudeau said on Monday that Canada would start with tariffs on $30 billion worth of goods immediately, with tariffs imposed on the remaining $125 billion on US products in 21 days’ time.
“Our tariffs will remain in place until the US trade action is withdrawn, and should US tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures,” he added.
This suggests Canada might be willing to pause or even stop oil exports to its southern neighbour.
EU ‘deeply regrets’ US tariffs
Trump has also said he plans to impose tariffs on imports from the European Union.
A spokesman for the European Commission said the bloc “deeply regrets” the US decision to slap tariffs on Canada and Mexico.
“This move risks disrupting global trade, harming key economic partners, and creating unnecessary uncertainty at a time when international cooperation is more crucial than ever,” he said.
“These tariffs threaten deeply integrated supply chains, investment flows, and economic stability across the Atlantic.”
German Economy Minister Robert Habeck said the EU would not be “pushed around” by US tariffs.
“If President Trump imposes the announced tariffs on EU products, we will react with unity and self-confidence,” said Habeck.
“We are walking into a comprehensive tariff conflict with our eyes wide open,” he added, warning of a “tariff spiral” after the announcement of retaliatory measures.
GNA