Trade War Begins: Trump’s Tariff Riles Canada, Mexico & China
Presidents of Mexico, US, and PM Canada. Image credit X.com
Canada, Mexico Vow to Counter Trump Tariff with Counter Measures
By Raisina Correspondent
New Delhi, February 2: The United States has begun the trade war with the imposition of tariffs against three key trading partners. The White House announced imposition of 25 per cent tariff against Canada and Mexico and 10 per cent on China.
British Columbia of Canda countered by banning imports of liquor from the US. Mexico President Claudia Sheinbaum activated ‘Plan B’ in response to the US imposition of the tariff.
“I instruct the Secretary of Economy to implement Plan B that we have been working on, which includes tariff and non-tariff measures in defence of Mexico’s interests,” added Sheinbaum.
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The White House explained the imposition of tariffs on Canada, Mexico, and China in the backdrop of the alleged “fentanyl trade”.
“President Trump is implementing a 10 per cent tariff on China until we secure the full cooperation of the Chinese government in the fight against fentanyl. China plays the central role in the fentanyl crisis that is destroying American lives,” said the White House in a statement.
The British Columbia Premier David Eby announced buying liquor from US red states. Crown corps (eg BC Hydro, ICBC, health authorities) has been directed to immediately stop buying American goods. The Canadian province is supporting targeted set of national tariffs against US products, said a statement.
“Premier David Eby is announcing immediate counter-measures to stand up for B.C.’s workers and businesses after the United States announced incoming 25 per cent tariffs on Canadian goods and 10 per cent tariffs on energy,” said a statement from the office of the premier.
Eby stated that “President Trump’s 25 per cent tariffs are a complete betrayal of the historic bond between our countries and a declaration of economic war against a trusted ally.”
Meanwhile, the White House in a statement said that “President Trump is implementing a 25 per cent tariff to be paid for by Mexican producers until Mexico cooperates with the U.S. in the fight against drugs. Mexican cartels are the world’s leading traffickers of fentanyl, meth, and other drugs”.
Experts in the US have warned of rise in costs with the imposition of additional tariffs. NBC News quoted Carl Harris of the National Association of Home Builders, saying: “Imposing additional tariffs on these imports will lead to higher material costs, which will ultimately be passed on to home buyers.”
China also has vowed to strongly react against the US on tariff. But the White House reasoned that the tariffs will help the US economy gain strength.
“A 2024 study on the effects of President Trump’s tariffs during his first administration found that they strengthened the U.S. economy and led to significant reshoring in industries like manufacturing and steel production,” said the White House in a statement, while quoting former Treasury Secretary Janet Yellen.
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