US President Donald Trump has imposed 25 percent additional tariffs on imports from Canada and Mexico and a 10 percent additional tariff on imports from China with the aim of ensuring national security and of protecting the interests of Americans, according to a statement released by the White House. Also, energy imports from Canada will be subject to a 10 percent additional tariff.
The tariffs in question will remain in force until the countries in question meet President Trump’s requirements. In the meantime, should these countries respond to the US tariffs with similar measures or tariffs, Trump may increase or expand the scope of the duties.
In a swift response to President Trump’s move, Dominic LeBlanc, Canadian minister of finance and intergovernmental affairs, and Mélanie Joly, Canadian minister of foreign affairs, announced that, similar to the comprehensive measures imposed by the US, the Canadian government will impose 25 percent tariffs on imports from US including lumber, motorcycles, household appliances and plastics, starting from February 4, when the US measures take effect. Moreover, minister LeBlanc pointed out that the Canadian government intends to impose tariffs on additional goods such as passenger vehicles, electric vehicles, and steel and aluminum products, though implementation will be delayed to allow for a 21-day period for the expression of public opinion. Also, the ministers underlined that the Canadian government will consider additional measures including non-tariff options if the US continues to apply tariffs on Canada.
Meanwhile, Mexican President Claudia Sheinbaum has ordered undisclosed retaliatory tariffs on the US as well, while the Chinese government said it will resort to the World Trade Organization (WTO) since the US measures severely violate WTO rules, adding that these developments will not benefit either side.
Experts think that the US tariffs may push up prices in the US domestic market and that a downturn may be seen in the US, Canada, Mexico and China.
