Following the confrmation by the United States about imposing tariffs on exports from Canada, China and Mexico, the three countries have also announced retaliatory measures against the US. US President Trump’s decision to impose reciprocal tariffs on countries has attracted widespread criticism along with concerns about inflation and rising trade tensions globally.
Canada imposes counter-tariffs on US goods
On Monday (3rd March), Canadian Prime Minister Justin Trudeau announced counter-tariffs on the US to begin on Tuesday. Condemning Trump’s decision said that there was no justification for the decision of the US. He said that Americans will now have to pay more for groceries and there will also be loss of jobs. “Because of the tariffs imposed by the US, Americans will pay more for groceries, gas and cars, and potentially lose thousands of jobs,” said Trudeau. “Tariffs will disrupt an incredibly successful relationship, They will violate the very trade agreement that was negotiated by President Trump in his last term,” he added.
Canada plans to impose levies on US imports worth $155 billion over 21 days starting on Tuesday. In the first stage, American goods worth $20.6 billion will be taxed. “The first stage will see 25 per cent tariffs placed on approximately Canadian USD 30 billion (USD 20.6 billion) worth of goods from the US exporters. These measures came into effect at 12:01 am New York time unless the US reverses its decision,” Trudeau announced. He said that Canadian tariffs will remain until the US withdraws its tariffs.
Mexico prepares backup plans
Responding to Trump’s threat of imposing tariffs, Mexican President Claudia Sheinbaum Pardo said that the country is prepared for all possibilities if the US tariffs take effect. Speaking to the media on Monday, Sheinbaum said that Mexico has backup plans.”It is a decision that depends on the United States government, on the United States President. So whatever his decision is, we will make our decisions and there is a plan, there is unity in Mexico,” said Sheinbaum.
“W have a plan B, C, D,” she said. As per reports, Mexican officials recently their American counterparts to negotiate trade and security policies and the impending tariffs. The country was able to avoid the first round of US tariffs by making a last-minute deal to send its troops to its northern border. Mexico has also taken stringent measures to boost its anti-drug actions.
China retaliates by imposing levies
China has also countered the US tariffs by announcing a 10-15 per cent hike in import taxes on a range of US goods including agricultural and food products to come into effect on 10th March. The decision is likely to affect 25 US exports. “Beijing will impose an additional 15 per cent tariff on US chicken, wheat, corn and cotton and an extra 10 per cent levy on US soybeans, sorghum, pork, beef, aquatic products, fruits and vegetables and dairy imports from March 10,” the Chinese finance ministry announced.
Warren Buffet calls US tariffs an act of war
Billionaire investor Warren Buffet has described Trump’s tariffs as ‘an act of war’. “Tariffs are actually-we’ve had a lot of experience with them-they’re an act of war, to some degree,” said Buffet. He said that tariffs are ultimately paid by consumers who purchase taxed goods. “The Tooth Fairy doesn’t pay’em, ” he added.
On Monday, the US President announced that 25 per cent tariffs on goods from Mexico and Canada will take effect from Tuesday. In a punitive measure for China’s alleged smuggling of synthetic drug fentanyl into the US, Trump said that he would raise taxes on all Chinese imports to 20 per cent from the earlier 10 per cent. “Tomorrow – tariffs 25 per cent on Canada and 25 per cent on Mexico. And that’ll start. They’re going to have to have a tariff,” said Trump. He justified the tariffs as a measure to enforce border security and boost anti-drug efforts. Stock markets across the globe took a hit after the US announced tariffs on Canada and Mexico.
During Prime Minister Modi’s recent visit to the US, Trump raised the issue of high tariffs on cars in India with him. “I told the Prime Minister Modi yesterday – he was here. I said, here is what you do. We’re going to do – be very fair with you. Whatever you charge, I’m charging”, said Trump.
