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Trade tensions escalate: Trump imposes major tariffs on Mexico, Canada, and China

Trade tensions escalate: Trump imposes major tariffs on Mexico, Canada, and China
Monday 03 February 2025 - 09:10 By: Dakir Madiha
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In a significant shift in international trade policy, US President Donald Trump has announced substantial tariffs on imports from Mexico, Canada, and China. The sweeping measures, revealed on Saturday, impose a 25% tariff on Mexican and most Canadian imports, while Chinese goods will face a 10% tariff starting Tuesday.

Trump's stated objective centers on addressing what he terms a "national emergency" related to fentanyl trafficking and illegal immigration across the North American borders. The administration has not specified the precise conditions required for lifting these tariffs.

The announcement has prompted swift responses from the affected nations. Canada, as one of the United States' primary trading partners, has announced retaliatory measures under Prime Minister Justin Trudeau's leadership. The Canadian government plans to implement a 25% tariff on $155 billion worth of US products, including beer, wine, lumber, and appliances. The tariffs will be rolled out in two phases: $30 billion effective Tuesday, followed by the remaining $125 billion three weeks later.

Trudeau has cautioned that these measures could lead to increased prices for US consumers and disruptions in various industries, particularly automotive manufacturing and energy sectors. He has also advised Canadians to reconsider US travel plans and American product purchases.

Mexican President Claudia Sheinbaum has strongly opposed Trump's decision, particularly rejecting accusations of governmental ties to criminal organizations. Through social media, she denounced any suggestions of US intervention in Mexican territory.

The tariff structure includes special provisions for energy imports, with Canadian energy products receiving a reduced 10% duty, while Mexican energy imports face the full 25% rate. This distinction notably affects crude oil imports from Canada, which constituted approximately one-quarter of total US imports from the country in 2023.

China's Commerce Ministry has also voiced opposition to the tariffs, announcing plans to contest the US decision through the World Trade Organization while considering additional countermeasures.

While Republican leadership has welcomed the decision, which fulfills one of Trump's campaign promises, economists have expressed concern that escalating trade tensions with key trading partners could hamper economic growth and increase costs for both businesses and consumers.

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