US tariffs trigger retaliation from China, Canada

New Delhi, Mar 4: US President Donald Trump’s new tariffs on Canada, Mexico, and China have sparked swift retaliatory action. From Monday night, the US has imposed a 25% tariff on Canadian and Mexican goods and a 10% levy on Chinese imports.

Canada’s Response:

Canada hit back with 25% tariffs on $107 billion worth of US goods. The affected items include appliances, cosmetics, orange juice, beer, coffee, and even motorcycles. Future rounds may target passenger vehicles and trucks, a crucial trade sector.

China’s Countermeasures:

China imposed 10-15% tariffs on US agricultural exports, including wheat, corn, meat and soybeans. Beijing also placed several US firms on an “unreliable entity list,” restricting their access to Chinese markets.

Impact and Reactions:

Mexico is expected to announce its own countermeasures soon.

The tariffs come as Trump accuses Canada and Mexico of failing to stop fentanyl smuggling into the US, though data shows most fentanyl seizures occur at the US-Mexico border. Experts warn that the trade dispute could push up consumer prices in the US, affecting goods like fuel and maple syrup. As fears of a trade war grow, global markets have reacted nervously, with analysts cautioning about potential disruptions to international trade.