Canada, Mexico, and China have pledged to retaliate against the new US tariffs imposed by President Donald Trump, escalating global trade tensions. Trump announced that a 25% tariff on Canadian and Mexican imports and an additional 10% tax on Chinese goods will take effect on Tuesday. Canadian energy exports will face a reduced 10% tariff. The US president justified the move as part of his strategy to combat illegal immigration and drug trafficking, two of his primary campaign promises. Both Canada and Mexico confirmed they are preparing reciprocal tariffs on US products, while China vowed to take "necessary countermeasures" to defend its economic interests. Economists have warned that the tariffs and expected retaliatory measures could trigger a new global trade war, leading to price hikes on a wide range of goods, including automobiles, lumber, steel, food, and alcohol. Despite concerns over economic repercussions, Trump signaled his willingness to escalate trade restrictions further if these countries retaliate. The White House defended the move in a statement on X, saying, "Today's tariff announcement is necessary to hold China, Mexico, and Canada accountable for their promises to halt the flood of poisonous drugs into the United States." Trump also cited national security concerns, invoking the International Emergency Economic Powers Act (IEEPA), claiming that illegal immigration and the influx of fentanyl and other drugs pose a major threat to American citizens. Canadian Prime Minister Justin Trudeau strongly condemned the tariffs, announcing that his government will impose 25% tariffs on $155 billion worth of American goods. The first wave, worth $30 billion, will take effect on Tuesday, followed by another $125 billion in 21 days. "We don't want to be here, we didn't ask for this," Trudeau said at a Saturday press conference. "But we will not back down in standing up for Canadians." Canada's retaliatory tariffs will target beer, wine, bourbon, fruits, vegetables, perfumes, clothing, shoes, household appliances, sporting goods, and furniture, as well as lumber and plastics. Trudeau also hinted at non-tariff measures related to critical minerals and procurement, without elaborating. Rejecting US claims that Canada's border poses a national security risk, Trudeau pointed out that less than 1% of fentanyl entering the United States originates from Canada. In an attempt to avoid tariffs, Ottawa had earlier pledged $1.3 billion CAD ($900 million USD) in border security measures, but Trump dismissed the offer. Mexican President Claudia Sheinbaum also rejected Trump's "intolerable alliance" accusations, calling allegations that her government collaborates with drug cartels "slander." She called on the US to crack down on the illegal flow of firearms into Mexico, arguing that cartels are armed largely with weapons smuggled from the US. Sheinbaum emphasized that Mexico is willing to work with the US, stating, "Problems are not resolved by imposing tariffs, but by talking." She instructed Mexico's economy minister to implement tariff and non-tariff measures in response, including 25% tariffs on US goods. China issued a strong rebuke to the tariffs, calling them "unjustifiable and harmful to global trade." The Chinese Embassy in Washington said it would file a lawsuit with the World Trade Organization (WTO) against the United States for "wrongful trade practices." "Trade and tariff wars have no winners," a Chinese government spokesperson said. The 10% tariff on Chinese imports will be imposed on top of existing tariffs levied by Trump during his first term and additional duties enacted under President Joe Biden. At the World Economic Forum in Davos, Chinese Vice Premier Ding Xuexiang stated that China was committed to "a win-win approach to trade" and sought to expand its imports and trade relationships rather than escalate tensions. Trump's decision has sparked concerns among US industry groups, who warn that the tariffs could increase costs for American consumers and businesses. The auto industry is expected to be among the hardest hit. Auto components frequently cross borders multiple times before final assembly, and economists at TD Economics estimate that the tariffs could increase the average price of a US car by $3,000. A January report by the Peterson Institute for International Economics warned that blanket 25% tariffs on Canada and Mexico could slow economic growth and accelerate inflation in all three countries. The Canadian Chamber of Commerce also issued a statement criticizing the move, saying the tariffs would have "immediate and direct consequences on Canadian and American livelihoods" and would "drastically increase the cost of everything for everyone." The National Homebuilders Association warned that housing costs could rise due to tariffs on lumber and construction materials, while Farmers for Free Trade cautioned that struggling US farmers could face severe consequences if agricultural exports become a target for retaliatory tariffs. The US Retail Industry Leaders Association, which represents major corporations such as Home Depot, Target, and Walgreens, urged the administration to reconsider, hoping that the tariffs could still be averted. — Agencies
