Trump Implements Tariff Hikes on Mexico, Canada, and China – Retaliation Looms

US President Donald Trump has implemented tariff increases on products from Mexico, Canada, and China as previously announced. Punitive measures of 25% on goods from Canada and Mexico will be enforced starting today, Tuesday, March 4, according to the White House. The announcement led to a sharp decline in stock markets. Trump also ordered a doubling of import tariffs on Chinese goods imposed in February to 20%. According to the New York Times, imports from Canada, Mexico, and China account for over 40% of total U.S. imports. Trump justified the tariffs against Mexico and Canada by stating that neighboring countries aren’t taking sufficient action against drug trafficking and illegal immigration across their shared borders. He accuses Beijing of failing to stop the smuggling of fentanyl into the U.S. Trump uses tariff threats as a negotiation tactic to force concessions in other areas. Various tariff announcements have been made in recent weeks, some of which were immediately suspended. Canada and Mexico may face new punitive measures unless they reach another agreement with Trump. Canada retaliates with counter-tariffs; Prime Minister Justin Trudeau announced corresponding measures. Canada will impose 25% tariffs on American products effective immediately. Initially targeting goods worth $3 billion, this amount will increase after 21 days to $15.5 billion. China also responded, planning additional tariffs on American agricultural products. Trump’s latest order imposes 20% tariffs on all Chinese imports, although the effective date remains unclear. This could escalate into a trade war reminiscent of 2018. Additionally, Trump targets agriculture by imposing tariffs on all foreign agricultural imports starting April 2, potentially affecting global prices.