theglobalsun – U.S. President Donald Trump imposed new tariffs on imports from Canada, Mexico, and China on Saturday, prompting swift international reactions. The executive order enforces a 25% tariff on goods from Mexico and Canada and a 10% duty on Chinese imports. Additionally, energy resources from Canada face a lower 10% tariff to reduce potential disruptions to gasoline and home heating oil prices, according to a senior administration official.
Tariffs Linked to Immigration and Drug Policy
Trump defended the tariffs in a post on X, stating that they were necessary due to “the major threat of illegal aliens and deadly drugs killing our citizens, including fentanyl.” He warned that if Canada, Mexico, or China retaliate, the U.S. could raise tariffs further or expand them to additional sectors.
Impact on Global Trade and U.S. Foreign Policy
The U.S. conducts $1.6 trillion in annual trade with Canada, Mexico, and China, making these tariffs a significant economic move. The Trump administration sees them as both a negotiating tool and a foreign policy measure aimed at pressuring these nations on immigration policies and drug trafficking enforcement.
International Responses and EU’s Position
One of the affected nations responded immediately and decisively, while the others adopted a wait-and-see approach. Meanwhile, the European Union is closely watching developments, especially after Trump criticized the EU’s trade policies as unfair.
As global markets react, businesses and policymakers remain uncertain about the long-term economic impact of these tariffs. Trade tensions continue to rise, with further developments expected in negotiations, countermeasures, and international diplomacy.
Canada Strikes Back with Retaliatory Tariffs
Canadian Prime Minister Justin Trudeau swiftly responded to Trump’s new tariffs by imposing 25% retaliatory duties on $155 billion worth of U.S. goods. He announced that tariffs on $30 billion of American imports will take effect on Tuesday. While additional duties on $125 billion in goods will follow in 21 days. This delay allows Canadian businesses and supply chains time to find alternative sources.
“Our response will be far-reaching,” Trudeau stated in a press conference on Saturday evening. The tariffs will target everyday American products, including beer, wine, bourbon, fruit, vegetables, perfume, clothing, and shoes. In addition, major consumer goods like furniture, household appliances, sports equipment, lumber, and plastics will also be affected.
Trudeau directly addressed American citizens, warning that these measures will harm Canadians but also have real consequences for U.S. consumers. Economists predict that retaliatory tariffs will further drive up prices, affecting cars, electronics, food, and other essential goods.
Meanwhile, Ontario Premier Doug Ford announced that all American alcohol products will be pulled from government-run liquor stores beginning Tuesday. The Liquor Control Board of Ontario will also remove U.S. products from its catalog. Preventing retailers from restocking American alcoholic beverages.
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Mexico Condemns Tariffs and Prepares Countermeasures
Mexico also vowed retaliation but did not disclose specific actions. President Claudia Sheinbaum condemned Trump’s tariffs and instructed Mexico’s secretary of the economy to implement “Plan B.” Which includes both tariff and non-tariff measures to protect Mexico’s economic interests.
In a strongly worded statement on X, Sheinbaum rejected the White House’s accusations that Mexico is linked to criminal organizations. She dismissed the claims as slander and emphasized that Mexico does not want fentanyl reaching the U.S. or any other country.
“Mexico does not seek confrontation,” Sheinbaum stated. “We believe in collaboration between neighboring nations.” However, she insisted that any cooperation must be based on mutual trust, shared responsibility, and respect for sovereignty.
“Coordination, yes; subordination, no,” she declared, signaling that Mexico will not accept U.S. interference in its internal policies. With tensions rising, Mexico’s response to the tariffs is expected to unfold in the coming days.
China Challenges U.S. Tariffs, Files WTO Complaint
China strongly condemned Trump’s new tariffs and announced plans to file a lawsuit with the World Trade Organization (WTO). The Chinese Ministry of Commerce released a statement on Sunday, asserting that the U.S.’s unilateral tariff increase violates WTO rules and disrupts trade relations between the two countries.
“In response to this wrongful action, China will file a lawsuit with the WTO and take necessary countermeasures to safeguard its rights and interests,” the ministry stated.
China has previously challenged tariffs through the WTO, including its recent dispute with the EU over tariffs on Chinese electric vehicles. However, China’s decision to hold back from immediate retaliation has sparked speculation that both nations might still avoid a full-scale trade war.
While Trump’s 10% tariffs on Chinese goods are lower than the 60% tariffs he threatened on the campaign trail, Beijing remains concerned about future economic restrictions.
China also dismissed Trump’s claims that Beijing plays a role in the U.S. fentanyl crisis, calling it a domestic issue. The Chinese government urged the U.S. to address its internal problems rationally instead of using tariffs as a threat.
EU Warns of Retaliation If Tariffs Extend to Europe
The European Union (EU) criticized Trump’s tariffs on Canada, Mexico, and China, warning that it would respond firmly if the U.S. imposed similar measures on EU exports.
A European Commission spokesperson stated that the EU “regrets the U.S. decision” and emphasized that its trade and investment relationship with the U.S. is the largest in the world.
“There is a lot at stake,” the spokesperson added. “Tariffs increase business costs, harm workers and consumers, and drive inflation. They create unnecessary economic disruption.”
Trump has repeatedly accused the EU of treating the U.S. “very unfairly, very badly” through unfair trade practices. Although Trump has not yet imposed new tariffs on the EU, he recently reaffirmed that he would “absolutely” target European products in the future.
Tensions between Trump and the EU remain high, especially following his controversial proposal to buy Greenland. As Europe monitors the situation, leaders are preparing countermeasures if Trump escalates the trade dispute.
Economic Experts Predict Widespread Recession and Inflation
Trump’s newly imposed tariffs on Canada, Mexico, and China may be just the beginning of a wider global trade war, according to Paul Ashworth, chief North America economist at Capital Economics. In a note on Sunday, Ashworth described the tariffs as “the first strike in what could become a very destructive global trade war.”
He predicts that the European Union will likely be targeted next, with additional universal tariffs expected as early as April. Trump has long advocated for broader tariff measures, frequently mentioning them on the campaign trail.
Ashworth warned that the economic impact of these tariffs will be severe for all nations involved. Since exports to the U.S. account for roughly 20% of Canada’s and Mexico’s GDP, the newly imposed duties could push both economies into recession by the end of the year.
For the U.S., the fallout could be just as damaging. Ashworth cautioned that the tariffs will accelerate inflation, making it larger and more immediate than initially expected. As the cost of imported goods rises, American consumers and businesses will face higher prices on essential goods such as electronics, food, and household products.
If additional tariffs expand to the EU and other trade partners, the global economy could experience disruptions in supply chains, reduced foreign investment, and a slowdown in economic growth. With nations preparing countermeasures, experts fear that tit-for-tat trade policies could spiral into a full-scale trade war.
As global markets react to the uncertainty, economists and policymakers are closely monitoring the potential economic consequences of Trump’s aggressive trade policies.
