Donald Trump’s tariffs on Mexico, Canada, and China came into effect on Tuesday, prompting threats of retaliation.
The US president imposed 25% tariffs on Mexico and Canada and doubled tariffs on Chinese imports from 10% to 20%.
“While President Trump gave both Canada and Mexico ample opportunity to curb the dangerous cartel activity and influx of lethal drugs flowing into our country, they have failed to adequately address the situation,” a White House statement read shortly before the tariffs took effect.
Fresh produce, cars and car parts and electronics, including phones and computers, are among the top goods the US imports from Mexico, Canada and China that will now face tariffs between 20% and 25%.
Crude oil from Canada – one of its top exports to the US – will have a 10% tariff rate instead of 25%.
China and Canada fight back
China hit back on Tuesday, announcing extra tariffs on US farm products.
A 15% tariff will apply to chicken, wheat, corn, and cotton, while a 10% tariff will cover sorghum, soybeans, pork, beef, seafood, fruit, vegetables, and dairy.
The Chinese Commerce Ministry said the tariffs would take effect on 10 March.
Beijing also added 10 more US firms to its “unreliable entity” list on Tuesday, blocking them from engaging in China-related import or export activities and from making new investments in the country.
The list includes defence companies such as Lockheed Martin Missiles and Fire Control, Lockheed Martin Aeronautics, and Lockheed Martin Missile System Integration Lab.
Canada quickly followed China’s lead, with Prime Minister Justin Trudeau announcing tariffs on $30 billion (£23.6 billion) of US goods just hours before the US measures took effect.
He said Canada would impose a further $125 billion (£98.4 billion) in tariffs by March 25.
“Canada will not let this unjustified decision go unanswered,” he said in a statement.
US prices may rise
The tariffs come at a time of persistent inflation and economic uncertainty in the US.
They risk driving up prices on a wide range of goods imported from Mexico, Canada, and China, which together sent $1.4 trillion (£1.1 trillion) worth of products to the US last year, according to Commerce Department data.
That represents more than 40% of all US imports.
More to come?
Trump and his administration have suggested that these tariffs are just the start.
Steel and aluminium tariffs are set to take effect on March 12, while dollar-for-dollar reciprocal tariffs – matching those imposed on US goods – are expected on March 2.
Last week, Trump signed an executive order to investigate lumber tariffs, despite claiming for ages that the US doesn’t need Canadian lumber.
The move could push up new home prices, a major inflation driver.
On Monday, he also suggested tariffs on agricultural imports could follow, in an attempt to boost domestic sales. These would take effect on April 2, he said on Truth Social.
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