U.S. President Donald Trump has signed an executive order imposing new tariffs on imports from China, Canada, and Mexico. The order introduces:
- 10% tariffs on goods imported from China.
- 25% additional tariffs on goods from Canada and Mexico.
- 10% tariffs specifically on Canadian energy products.
Canada's Retaliation
In response, Canadian Prime Minister Justin Trudeau announced a series of countermeasures during a press conference on the evening of February 1. Canada plans to impose 25% tariffs on American products worth CAD 155 billion (approximately HKD 830.7 billion).
- Tariffs on USD 30 billion worth of goods will take effect on Tuesday.
- Tariffs on an additional USD 125 billion worth of goods are set to be implemented within 21 days.
Trudeau stated that these measures are necessary to protect Canada's economic interests and counter the U.S. tariffs.
Mexico's Response
Mexican President Claudia Sheinbaum also announced retaliatory measures against the U.S. Sheinbaum directed Mexico's Economy Minister Marcelo Ebrard to activate the government's pre-prepared "Plan B", which involves imposing tariffs on U.S. goods exported to Mexico.
Details of Mexico's tariff measures are yet to be disclosed, but Sheinbaum emphasized that Mexico will not hesitate to defend its trade interests against the U.S.
Implications of the Escalating Trade Disputes
The U.S.'s tariff increases and the subsequent retaliatory measures from Canada and Mexico mark a significant escalation in trade tensions. This development could disrupt North American trade flows, impact global supply chains, and strain diplomatic relations among the three nations.
Observers closely monitor the situation as businesses and governments brace for the potential economic fallout of this intensifying trade conflict.
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