The United States has decided to move forward with imposing tariffs on imports from Canada and Mexico, lifting a month-long pause on the duties. The tariffs, set at 25% for imports from each country, will also include a 10% tariff on Canadian energy products. These decisions were made in line with amendments to President Donald Trump’s executive orders from the previous month.
Initially scheduled to take effect on February 4, the tariffs were delayed after temporary agreements were reached with both Canada and Mexico. These agreements centered around reducing migration into the U.S. and combating fentanyl trafficking. However, Secretary of Commerce Howard Lutnick stated that both countries had failed to adequately address these issues, leading to the implementation of tariffs.
In response to the new duties, Canada announced retaliatory tariffs of 25% on $155 billion worth of U.S. goods, with $30 billion of products subject to immediate tariffs and the remaining $125 billion to be tariffed in 21 days. Mexico also plans to announce countermeasures, including both tariff and non-tariff actions, in response to the tariffs imposed by the U.S.
On the other hand, Trump increased tariffs on China by 10% through an amendment to an executive order. This move follows China’s failure to cooperate with the U.S. in curbing the importation of fentanyl. In response, China announced additional tariffs on various U.S. agricultural imports, including chicken, wheat, corn, cotton, pork, beef, and more.
The escalating trade tensions between the U.S., Canada, Mexico, and China have raised concerns about a potential trade war. With the U.S. also considering tariffs on steel, aluminum, cars, semiconductors, pharmaceuticals, and more, the global trade landscape is becoming increasingly uncertain. China has expressed readiness to engage in a tariff war and trade war if necessary, emphasizing the need for respectful and cooperative relations between nations.
