Trade war erupts as Trump’s tariff on China, Mexico, Canada takes effect

President Donald Trump’s blanket tariffs on goods imported from Mexico, Canada, and China took effect on Tuesday, triggering a trade war as the affected countries have begun imposing retaliatory tariffs.

China, responding swiftly, announced 15 per cent tariffs on chicken, wheat, corn, and cotton imports from the US shortly after Mr Trump’s tariff took effect.

According to a statement issued by the Beijing State Council Tariff Commission on Tuesday, an additional 10 per cent tariff has also been imposed on “sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables, and dairy products” from the US.

China has also added 15 American companies, including drone maker Skydio, to its export control list.

This would bar Chinese companies from exporting dual-use equipment to them.

China’s retaliatory tariffs are seen as a strategic move aimed at targeting industries vital to the Trump administration’s key supporters.

Similarly, Canadian Prime Minister Justin Trudeau said the country intends to respond with tariffs on $30 billion of US goods.

In a statement issued shortly before the tariffs took effect, the Prime Minister said Canada would impose an additional $125 billion tariff on American goods by March 25.

“Canada will not let this unjustified decision go unanswered,” Trudeau said in a statement.
Also the premier of Ontario, Canada’s largest province, Doug Ford, declared that the country is ready to cut off energy supply to the US in response to President Trump’s tariffs.

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“If they want to try to annihilate Ontario, I will do everything, including cut off their energy, with a smile on my face. And I’m encouraging every other province to do the same,” Mr Ford told reporters on Monday according to CNN.

US tariff on China, Canada and Mexico

Hours after his inauguration on January 20, President Trump issued an executive order which imposed a 25 per cent tariff on goods from Mexico and Canada.

It imposed a 10 per cent tariff on goods from China and later increased the tariff to 20 per cent.

According to President Trump, the new tariff imposed on its long-time trading partners was necessitated by the growing health crisis in the US caused by the uncontrolled import of illegal drugs into the country.

President Trump said he wanted to pressure those countries into exerting stricter controls on the flow of fentanyl into the US.

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The US believes that several China-based entities supply precursor chemicals used to produce fentanyl in labs operated by drug cartels in the US and Mexico.

However, experts have said the tariff is likely to drive up prices for American consumers on a wide range of imported goods from the three nations.

In 2024 alone, China, Canada, and Mexico collectively exported $1.4 trillion in goods to the US.