Olusegun Ariyo
The new 25% tariffs of US President Donald Trump on imports from Mexico and Canada took effect on Tuesday, along with a doubling of duties on Chinese goods to 20%, launching new trade conflicts with the top three US trading partners.
The tariff actions, which could upend nearly $2.2 trillion in two-way annual US trade, went live at 12:01 a.m. EST (0501 GMT), a few hours after Trump declared that all three countries had failed to do enough to stem the flow of the deadly fentanyl opioid and its precursor chemicals into the US
China immediately responded after the deadline, announcing additional tariffs of 10%-15% on certain US imports from March 10 and a series of new export restrictions for designated US entities.
Canada and Mexico, which have reportedly enjoyed a virtually tariff-free trading relationship with the US for three decades, were poised to immediately retaliate against their longtime ally.
Canadian Prime Minister Justin Trudeau said Ottawa would respond with immediate 25% tariffs on C$30 billion ($20.7 billion) worth of US imports, and another C$125 billion ($86.2 billion) if Trump’s tariffs were still in place in 21 days.
He said previously that Canada would target American beer, wine, bourbon, home appliances and Florida orange juice.
“Tariffs will disrupt an incredibly successful trading relationship,” Trudeau said, adding that they would violate the U.S.-Mexico-Canada free trade agreement signed by Trump during his first term.
In retaliation, Ontario Premier Doug said that he was ready to cut off shipments of nickel and transmission of electricity from his province to the US.
On her part, Mexican President Claudia Sheinbaum was expected to announce her response during a morning news conference in Mexico City on Tuesday.
The extra 10% duty on Chinese goods adds to a 10% tariff imposed by Trump on February 4 to punish Beijing over the US fentanyl overdose crisis.
The cumulative 20% duty also comes on top of tariffs of up to 25% imposed by Trump during his first term on some $370 billion worth of US imports.
