In response to American tariffs, both China and Canada swiftly retaliated by imposing tariffs on American goods, raising concerns about a potential trade war. Mexico announced it would reveal its own retaliatory measures on 9 March, CNN reported.
On 4 March, President Donald Trump imposed sweeping 25% tariffs on Mexico and Canada, a bold and unprecedented move intended to pressure America’s closest trading partners into compliance. However, the decision risks destabilising the North American economy, including the US, at a critical moment when consumers are already grappling with rising inflation.
Trump also raised tariffs on all Chinese imports to 20%, up from 10%. These new duties add to existing tariffs on hundreds of billions of dollars’ worth of Chinese products. China and Canada wasted no time hitting back with tariffs on US goods, escalating fears of a looming trade conflict. Meanwhile, Mexico signalled its own response, set to be unveiled on 9 March.
On 4 March, Beijing responded by imposing a 15% tariff on US imports of chicken, wheat, corn, and cotton, according to a statement from the State Council Tariff Commission. The Commission also confirmed an additional 10% tariff on sorghum, soybeans, pork, beef, seafood, fruits, vegetables, and dairy products. Later, China expanded its measures against the US, halting lumber imports, suspending soybean export permits for three American firms, and launching an anti-dumping probe into certain US fibre-optic products.
Meanwhile, China’s Ministry of Commerce announced the addition of 15 American firms, including the drone manufacturer Skydio, to its export control list, effectively restricting Chinese companies from supplying them with dual-use equipment.
Hours before US tariffs took effect, Canadian Prime Minister Justin Trudeau vowed immediate retaliation with C$30 billion ($20.7 billion) in tariffs, followed by an additional C$125 billion ($86.2 billion) by 25 March. ‘Canada will not let this unjustified decision go unanswered’, Trudeau stated.
Mexican President Claudia Sheinbaum announced on 4 March that she would unveil retaliatory tariffs and non-tariff measures on US imports on 9 March. She also expects to speak with Trump on 6 March. ‘The US unilateral decision impacts both domestic and foreign businesses operating in Mexico, as well as our citizens’, she stated at a press conference in Mexico City.
