China and Canada have announced countermeasures in response to President Donald Trump’s new tariffs, escalating tensions between the U.S. and its largest trading partners.
The tariffs, which target imports from Canada, Mexico, and China, have sparked fears of a trade war that could affect businesses and consumers worldwide.
Trump imposed a 25% tariff on Canadian and Mexican imports and a 10% levy on Chinese goods. In response, Canada is placing 25% tariffs on $155 billion worth of U.S. products, with an initial $30 billion taking effect immediately and the rest following in three weeks. Meanwhile, China has set tariffs of 10-15% on U.S. agricultural imports and is restricting U.S. firms in sectors like aviation, defense, and tech.
Trump justified the tariffs by accusing China of not doing enough to stop fentanyl shipments to the U.S. He also said the move would pressure Canada and Mexico to take stronger action against illegal drugs and migration. However, experts warn that American consumers could face higher prices, and businesses could struggle as exports become more expensive for foreign buyers.
Mexico is expected to announce its response soon. President Claudia Sheinbaum has stated that her government has contingency plans.
Markets in the U.S. and Asia have reacted negatively, with stocks falling over concerns about economic uncertainty. Business owners, like Mississippi-based manufacturer Scott Beggs, say the tariffs could undo years of effort in expanding exports. His Canadian buyers have already paused orders, anticipating retaliatory tariffs.
Prime Minister Justin Trudeau has promised that Canada’s countermeasures will last as long as the U.S. tariffs do. Besides product tariffs, Canada could further retaliate by limiting energy exports to the U.S., a move that could have significant economic consequences given its role as America’s top oil supplier.
As tensions rise, businesses and consumers on both sides of the border brace for the fallout, with trade, jobs, and economic growth all at stake.