They’re not afraid of Trump, these are the tough responses from Mexico and Canada on U.S. tariffs
The US’s closest trading partners were quick to respond to Trump slapping steep tariffs on them setting the stage for a new destabilizing trade war.
President Donald Trump signed an order to implement steep tariffs on the United States’ three largest trading partners, China, Canada and Mexico, on Saturday. While there will be a 10% duty applied to all imports from China, a 25% levy will be imposed of imports from the other two with the exception of Canadian energy and oil exports which will be taxed at 10%.
Trump posted on his social media platform Truth Social that he imposed the tariffs “through the International Emergency Economic Powers Act (IEEPA) because of the major threat of illegal aliens and deadly drugs killing our Citizens, including fentanyl.” He has said that they will stay in place until “the crisis is alleviated.” The implications for US consumers is likely increased costs for purchasing a wide range of items which will be felt rather quickly.
All three were quick to respond to the move from the White House. Canada is the only one of the three that has taken concrete actions.
China “firmly deplores and opposes this move” will sue US
The Ministry of Foreign Affairs of China said that Beijing “will take necessary countermeasures to defend its legitimate rights and interests” and that it “firmly deplores and opposes this move.”
The Ministry of Commerce said that the tariffs violate World Trade Organization rules and it will file a lawsuit with the WTO. The agency added that the new tariffs don’t do anything to resolve the issues the Trump administration says it is trying to address but merely “disrupts normal economic and trade cooperation,” between the two nations.
Josh Lipsky, senior director of the Atlantic Council’s Geoeconomic Center told Reuters that China can be patient for the moment. “China is breathing easy. They went from a 60% threat to a 10% they can manage through currency [depreciation],” he said.
Mexico’s president proposes working together, calls for retaliatory tariffs
Mexican President Claudia Sheinbaum in an extended post on social media said, “we categorically reject the White House’s slander” that her nation’s government was in cahoots with the drug cartels. She touted the work by Mexican law enforcement to seize 40 tons of drugs in four months, “including 20 million doses of fentanyl.” They have also arrested 10,000 criminals associated with the criminal gangs.
Sheinbaum called on the US to do more to combat the narcotics problem on their side of the border and once again criticized the flow of high-powered weapons from US gun shops to organized criminals across the border in Mexico.
She proposed to Trump that they “establish a working table with our best security and public health teams.” In the meantime, Sheinbaum ordered “the Secretary of Economy to implement the Plan B we have been working on, which includes tariff and non-tariff measures in defense of Mexico’s interests.”
Canada strikes back with 25% tariffs on US goods worth $155 billion
Coinciding with the start of US tariffs on the three nations set to begin at 12:01 am EST Tuesday, February 4, Canada will impose a 25% tariff on $30 billion worth of goods from the US. Prime Minister Justin Trudeau said at a press conference that those will be followed by a similar levy on another $125 billion worth of American products in 21 days’ time to give importers and supply chains a chance to find alternatives.
Trudeau explained that Canada, like the US, is plagued by the scourge of fentanyl and they have been working to combat the problem with positive gains. “As neighbors we must work collaboratively to fix this. Unfortunately, the actions taken today by the White House split us apart instead of bringing us together,” the Canadian PM told reporters in a somber tone.
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