The United States and its major trading partners are entering a new phase of protectionism as Canada, Mexico, and China announced plans to implement countermeasures against tariffs imposed by President Trump. These tariffs, which affect a wide range of American goods worth over $100 billion, will see a 25 percent levy on products crossing into Canada.
In a televised address, Canadian Prime Minister Justin Trudeau expressed regret over the situation, emphasizing the strong ties between the two nations. He stated, “We don’t want to be here.”
China responded by stating it would take “corresponding countermeasures” to protect its rights and interests, including potential legal action at the World Trade Organization (WTO). Meanwhile, Mexican President Claudia Sheinbaum indicated that her government would announce initial steps of a contingency plan if an agreement with the U.S. is not reached, warning of retaliatory measures.
The tariffs, announced by Trump, include a 25 percent tax on all goods from Canada and Mexico, with a 10 percent tariff on Canadian energy and oil exports. Additionally, a 10 percent tariff will be applied to Chinese goods. The new policy also ends the exemption allowing Americans to purchase up to $800 of goods daily from these countries without incurring tariffs, impacting businesses that rely on direct shipping from China.
These tariffs are set to take effect shortly after midnight on Tuesday and will be added to existing tariffs, increasing costs for consumers. Trump defended the tariffs, acknowledging potential economic pain but suggesting it would be justified to combat the flow of fentanyl and migrants across the border.
While most Republicans in Congress have remained supportive or silent regarding the tariffs, Senator Rand Paul criticized them, stating, “Tariffs are simply taxes,” and warning that they would lead to higher prices and reduced trade.
Democrats have criticized Trump, claiming his actions will increase costs for American consumers. Representative Gabe Vasquez stated that the president’s decision has raised prices on essential goods.
China's ability to challenge the U.S. at the WTO may be limited, as the organization has faced difficulties in handling legal disputes due to a lack of judges. Historically, China has responded to U.S. tariffs with its own, but it has limited options due to the trade imbalance.
American law enforcement officials have called for an end to duty-free shipments from China, citing concerns over fentanyl trafficking. In response, China urged the U.S. to address its own drug issues rather than imposing tariffs on other countries.
Sheinbaum echoed this sentiment, suggesting that the U.S. should focus on its internal issues rather than targeting Mexico. She also expressed her willingness to collaborate on addressing the fentanyl crisis.
In his announcement of the Canadian tariffs, Trudeau warned that the U.S. tariffs would also have negative repercussions for American workers, potentially jeopardizing jobs in the auto and manufacturing sectors. In response, Canadian provinces have begun to restrict the sale of American alcoholic beverages in government-owned stores, with some targeting states that strongly support Trump’s policies.