A new trade war has commenced. The US has imposed tariffs against Canada, Mexico and China while responses followed shortly after.
On February 1, US President Donald Trump imposed a new 25 percent tariff on imports from Canada and Mexico as well as an additional 10 percent tariff on China, according to a White House announcement. Canadian energy resources will also include a lower 10 percent tariff.
The tariffs were attributed to crises including illegal immigration and drug trafficking.
«President Trump is taking bold action to hold Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country,» the White House added.
Swift Response
One day later, Canada responded in tit-for-tat fashion with a 25 percent tariff on American imports.
«These countermeasures are effective immediately and will remain in place until the US eliminates its tariffs against Canada,» said an official statement by the Department of Finance Canada, outlining a list of goods that includes alcohol and fruits.
Mexican President Claudia Sheinbaum also ordered retaliatory «tariff and non-tariff measures». China’s Ministry of Commerce said it would file a lawsuit with the World Trade Organization for the «wrongful practices of the US» and take unspecified measures to safeguard its rights and interests.
