Search Here

The United States has sparked a major trade dispute after President Trump announced a 25% tariff on all goods imported from Canada and Mexico.

China, already facing tariffs under his administration, saw an additional 10% levy, bringing the total to 20%.

In response, America's closest allies and top trading partners have announced retaliatory measures, further escalating tensions.

Canadian Prime Minister Justin Trudeau swiftly condemned the tariffs, announcing an immediate $30 billion counter-tariff on US goods, with an increase to $155 billion in three weeks. Canada's response will target key American exports, including beer, wine, bourbon, and Florida orange juice.

"Canada will not let this unjustified decision go unanswered," Trudeau said. He emphasized that the US tariffs would drive up prices for American consumers while violating the very trade deal negotiated by the Trump administration. Trudeau also warned of potential non-tariff measures if the situation remained unresolved.

Ontario Premier Doug Ford took a firm stance, warning that if the US continued its aggressive trade measures, Ontario could retaliate by cutting energy exports, CBS News said.

He emphasized that his province would not hesitate to take strong action, including halting shipments of essential minerals and suspending contracts with US companies. Ford insisted that Canada must respond forcefully to protect its economy and workers.

President Trump, undeterred, issued a statement on social media: "Please explain to Governor Trudeau that when he puts on a Retaliatory Tariff on the US, our Reciprocal Tariff will immediately increase by a like amount!"

China Warns US: 'Maximum Pressure' Tactics Will Backfire in Trade Dispute

China also wasted no time in responding. Foreign Ministry spokesperson Lin Jian dismissed the US tariffs, warning against "maximum pressure" tactics. "Attempting to exert maximum pressure on China is targeting the wrong opponent," Lin said.

Beijing imposed 10-15% tariffs on US agricultural goods, including wheat, corn, and soybeans, along with restrictions on 25 American firms.

Chinese analyst Victor Gao noted that China is better prepared than during Trump's first term, having diversified its trade partnerships. However, he warned that if the situation escalates, "at best, it would end in a bloody tie."

Mexican President Claudia Sheinbaum expressed deep concern, calling the tariffs "inconceivable."

She emphasized that they would harm businesses and increase costs for both Americans and Mexicans. While Sheinbaum promised countermeasures, she refrained from detailing them, stating that an official announcement would come soon.

"We collaborate to stop illegal drug trafficking, but the US must also take responsibility for its opioid crisis," she said, pushing back against Trump's justification for the tariffs.

The Mexican peso fell in response to the news, signaling economic uncertainty as the trade battle unfolds.

The European Commission added its voice to the criticism, calling on the US to rethink its decision.

It warned that the tariffs could disrupt global trade, strain relationships with key economic partners, and create unnecessary instability in international markets.

According to Politico, Bernd Lange, chair of the European Parliament's international trade committee, added, "There is no winner in a trade war, only losers."