WASHINGTON, DC (LOOTPRESS) – President Donald Trump’s new tariffs on imports from Mexico, Canada, and China took effect Tuesday, sparking swift retaliation from Beijing and warnings from Canada.
Under the new trade measures:
- Imports from Mexico and Canada are now subject to a 25% tariff.
- Tariffs on Chinese goods have increased by 10% on top of existing duties.
The White House defended the move, stating that Trump remains committed to trade policies that serve U.S. interests.
China and Canada Respond
China immediately retaliated by announcing new 10% to 15% tariffs on U.S. exports, including chicken, wheat, soybeans, and beef. These tariffs add to existing duties imposed during the 2018 trade war, some of which are already at 25%. The new Chinese tariffs take effect on March 10.
Meanwhile, Canadian Prime Minister Justin Trudeau warned of countermeasures, pledging $30 billion in tariffs on American goods immediately and an additional $125 billion within 21 days if the U.S. does not lift its trade restrictions. Trudeau also signaled that Canada is exploring non-tariff measures in response.
Market Reaction
The announcement triggered a selloff in U.S. markets Monday, with:
- The S&P 500 falling 1.76% to 5,849.72—its worst day since December.
- The Dow Jones Industrial Average dropping 1.48% to 43,191.24.
- The Nasdaq declining 2.64%.
Asian and European markets reacted mixed, with Japan’s Nikkei down 1.2%, Hong Kong’s Hang Seng slipping 0.3%, and Germany’s DAX losing 1.6%.
Trade Policy and Background
The tariffs come just a month after Trump delayed the measures, following border security and drug trafficking negotiations with Mexico and Canada. The U.S. now has its highest tariff levels since 1943, according to Yale’s Budget Lab.
With tensions rising, global trade markets are bracing for further disruptions.
