President Donald Trump unleashed tariff policies on Canada, Mexico, and China on Saturday over what he described as the countries’ failure to control immigration and entry of drugs into the United States.
Mexico’s President Claudia Sheinbaum, Canada’s Justin Trudeau and China’s Ministry of Commerce are not taking the news too kindly, promising to retaliate against the US-imposed levies.
Mexico’s President wants to collaborate with Trump’s government to fight off the drug crisis.
In a post on Truth Social, Donald Trump said that he had placed 25% general levies on Canadian and Mexican imports and 10% on China’s. He, however, imposed a 10% tariff on Canadian energy.
Trump’s tariff orders act on the International Emergency Economic Powers Act, which he says is necessary to protect the American people from drugs like fentanyl and illegal migrants.
Gabriela Siller, director of economic analysis at Grupo Financiero Base, insisted that the Mexican economy would not survive the US tariffs. She said the country could plunge into a recession if the tariffs persist for more than three months, adding that the US levies could also halt any new foreign direct investments, further hurting the economy.
Additionally, Jennifer Safavian, the president of Autos Drive America, believes that the tariffs will be “detrimental” to Americans’ jobs and lives. The Budget Lab at Yale even revealed that the average American household could lose $1,170 in income if the tariffs are imposed and even lose more if Canada, Mexico, and China retaliate.
Unfortunately, Mexico’s President Claudia Sheinbaum has vowed to respond to US levies, with more tariffs, asking the economic minister to draft a retaliatory plan.
In an X post, she lashed out against Trump, saying Mexico has tried to fight off the drug problem. She detailed that her government seized over 40 tons of drugs, including 20 million doses of fentanyl and even made multiple arrests in just four months.
She, however, argued that they do not want confrontation and are willing to work with the US government. She promised to also enforce non-tariff policies, calling for collaboration between the US government and hers to deal with security issues and the fentanyl public health crisis.
She said:
We must work together in an integrated manner, but always under the principles of shared responsibility, mutual trust, collaboration and, above all, respect for sovereignty, which is not negotiable. […] To this end, I propose to President Trump that we establish a working group with our best public health and security teams.
President Claudia Sheinbaum
Trudeau hits back with tariffs as China plans WTO complaint against US
Canadian Prime Minister Justin Trudeau is also prepared to retaliate against Trump’s imposed tariffs.
Given his close relationship with Donald Trump, ex-Canadian Finance Minister Chrystia Freeland proposed slapping a 100% tariff on Elon Musk’s Tesla vehicles.
However, the country’s natural resources minister, Jonathan Wilkinson, said the tariffs would target high-volume American imports with readily available domestic alternatives.
Trudeau said that they would place 25% tariffs on $100 billion worth of American goods, with immediate tariffs on $30 billion worth of US imports.
Nevertheless, Trump’s administration has only increased its threats to Canada, claiming that any retaliation would only raise US tariffs, hinting at a full-blown trade war.
According to reports, China’s commerce ministry has also responded saying it will file a complaint with the World Trade Organization (WTO) and “take corresponding countermeasures.”
The ministry’s spokesperson’s office said in a statement Sunday that China deplored the American action and would file a legal case against it at the World Trade Organization. China also “will take corresponding countermeasures to safeguard its rights and interests firmly,” the statement said, without specifying what those might be.
Meanwhile, the cryptocurrency market has reacted to the trade tensions, with Bitcoin (BTC) falling below $100,000 for the first time in six days after U.S. President Donald Trump signed an executive order imposing import tariffs on goods from China, Canada, and Mexico. The leading crypto has since recovered and is currently trading at $100,284 as of this writing.
Trump’s tariffs will formally take effect on Tuesday, leaving little room for a possible resolution to stop them.
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Source: https://www.cryptopolitan.com/canada-china-and-mexico-respond-to-us/