US President Donald Trump has imposed 25% tariffs on imports from Canada and Mexico. Trump said the tariffs were a response to what he said was an unacceptable flow of illegal drugs and undocumented migrants into the US from the two neighbouring countries.
“There’s no more room for Canada and Mexico,” Trump said at the White House. President Trump added that the only way to avoid the tariffs would be for Canadian and Mexican manufacturers to move production to the US. “They’re going to have to build their own car factories, frankly, and other plants here in the US. In that case, there’s no tariff,” Trump said.
In addition, an additional 10% tariff was imposed on imports from China over allegations that Beijing is not doing enough to stop the flow of fentanyl into the US. This brings the total tariffs on Chinese products to 20%, on top of the previous 10% imposed a month ago.
-Trudeau: Canada will immediately impose 25% tariffs in response-
Canadian Prime Minister Justin Trudeau said Canada will immediately respond with tariffs on $30 billion of American products. “Today, after a 30-day hiatus, the United States administration decided to continue imposing 25 percent tariffs on Canadian exports and 10 percent tariffs on Canadian energy. Let’s be absolutely clear – there is no justification for these actions,” Trudeau said.
-China responded immediately-
China’s Ministry of Finance announced the imposition of 15% tariffs on some US agricultural products, including chicken, wheat, corn and cotton. Other products, such as soy, pork, beef, fruit, vegetables and dairy products, will be subject to a 10% tariff. These tariffs will take effect on March 10
-Mexican President: Mexico deserves respect–
Mexican President Claudia Sheinbaum told Trump that “Mexico deserves respect.” “Cooperation and coordination, yes. Subordination, never,” Sheinbaum said.
Trump also announced a 25% tariff on all steel and aluminum imports, set to take effect on March 12, and the possibility of reciprocal tariffs on individual countries, including a 25% tariff on the European Union.
–Canada could cut off U.S. energy access–
Canada announced on Monday that it would retaliate by imposing 25% tariffs on $155 billion worth of U.S. goods when the U.S. tariffs take effect.
Prime Minister Justin Trudeau said Canada would immediately target $30 billion worth of products, with the remaining $125 billion to be covered over the next 21 days. Any new tariffs Canada imposes will remain in place for the same length of time as the U.S. tariffs, Trudeau said.
Canadian dollar-for-dollar tariffs on U.S. goods during Trump’s first administration totaled $16.6 billion.
Another way Canada could hit back at the U.S.—and probably the hardest on the U.S. economy—is by restricting access to energy. Canada is the largest supplier of oil to the US and also supplies electricity to 30% of US states.
–Tariffs will also affect American exporters–
The trade war with tariffs is not the only concern for companies that import products to the US. American exporters are also affected.
Scott Beggs runs a manufacturing company in Mississippi that employs more than 100 people and manufactures wood decking and patio systems.
He has been looking to expand into the Canadian market for some time and has had some success. But in recent weeks, its Canadian customers have halted orders, angered by the US measures and expecting their government to retaliate. Canada has already announced that its countermeasures will take effect as soon as the US tariffs take effect.
“All my hard work for the last four to five years could go down the drain,” Beggs said, according to the BBC.
–What’s happening on Asian stock markets this morning?–
Stock prices fell on most Asian stock markets this morning as investors fear a trade war, after Washington imposed tariffs on imports from Canada and Mexico and increased tariffs on Chinese products.
The MSCI index of Asian shares was down 0.3 percent at 7:00 AM. Japan’s Nikkei index slipped 1.3 percent, while stock prices in South Korea, Hong Kong and Australia fell between 0.1 and 0.6 percent. In Shanghai, however, they rose slightly. Investors are cautious because yesterday US President Donald Trump imposed 25 percent tariffs on imports from Canada and Mexico.
–Honda moves production of new Civic from Mexico to US due to Trump tariffs–
Honda has decided to produce its next-generation Civic hybrid in the US state of Indiana instead of Mexico to avoid possible tariffs on one of its best-selling models, Reuters reported.
