Canada Slaps 25% Tariffs on U.S. Goods
In response to the U.S. tariffs, Canadian Prime Minister Justin Trudeau announced on Monday that Canada will impose 25% tariffs on U.S. imports starting Tuesday.
This retaliatory action will target $155 billion CAD worth of American goods over 21 days, with $30 billion CAD of goods affected immediately.
Trudeau expressed frustration with Trump’s actions, stating that the tariffs are unjustified and will harm both economies.
"Americans will pay more for groceries, gas, and cars, and potentially lose thousands of jobs," he warned, emphasizing that the tariffs violate the trade agreement negotiated under Trump’s administration.
China Responds with Potential Countermeasures
China has also vowed to retaliate against the U.S. tariff hikes. The Chinese Commerce Ministry issued a statement condemning the U.S. decision to impose tariffs, citing fentanyl-related issues.
China denied any wrongdoing in supplying chemicals used for fentanyl production, and the ministry called for the U.S. to "immediately withdraw" its tariffs, labeling them as “unreasonable” and “harmful.” According to Chinese state media, China may target U.S. agricultural and food products with tariffs as part of their countermeasures.
Mexico Prepares for Possible Retaliation
Mexico has also vowed to respond to Trump’s tariffs, although no official statement has been made yet. Mexican President Claudia Sheinbaum has confirmed that the country is ready for all eventualities, saying, "We have a plan, there is unity in Mexico."
Mexico previously avoided a similar tariff escalation last year through negotiations that involved sending troops to its northern border. With new tariffs on Chinese goods looming, Mexico has indicated it could implement further measures, particularly aimed at imports from China.
Trump’s Tariffs Set to Raise Prices and Cause Trade Strain
Trump’s 25% tariffs on goods from Canada and Mexico, as well as a 20% tariff increase on Chinese imports, are expected to have wide-ranging effects on the global economy.
These tariffs, aimed at tackling issues such as fentanyl trafficking and immigration, have sparked concerns over rising inflation and slower economic growth. Legendary investor Warren Buffett criticized the move, noting that tariffs act as a tax on consumers, raising prices on goods.
As the trade war intensifies, global markets are on edge, and the coming days will determine how countries like Canada, China, and Mexico will respond to Trump’s tariffs.
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Written By HowNHowTo.com