A trade dispute has escalated as the United States has implemented a 25% tariff on goods from Mexico and Canada, in line with a previous announcement by US President Donald Trump. Multiple US media outlets reported the development on Tuesday.
Furthermore, Trump has doubled the tariffs on Chinese imports, increasing the rate from 10% to 20%. This move comes on top of existing tariffs on Chinese goods, with a value in the hundreds of billions of dollars. The only exception for the 25% tariff on Canadian goods is energy-related products, such as crude oil, which will be subject to a 10% tariff.
The affected countries have already announced retaliatory measures. Canada’s Prime Minister Justin Trudeau has stated that the country will impose a 25% tariff on US goods worth $155 billion in response. China, meanwhile, has announced immediate tariffs of 15% on chicken, wheat, corn and cotton, as well as a 10% tariff on additional agricultural products.
Trump had announced on Monday that the tariffs for the neighboring countries of Mexico and Canada would come into effect, with no further delay. “Although President Trump has given both Canada and Mexico ample opportunity to address the dangerous cartel activities and the influx of deadly drugs into our country, they have failed to address the situation in a meaningful way” a statement from the White House read.