The 25% tariff on nearly all U.S. imports from Canada and Mexico came into effect earlier on Tuesday, just as the tax imposed on Chinese goods reached 20%. Companies from automakers to alcohol makers warn that the increased costs of importing goods from Canada and Mexico will have a wide range of impacts throughout the economy.
The tariff action has had a new trade conflict with the three largest trading partners of the United States.
The steep duty came into effect at 12:01 AM EST, and the three countries responded quickly and sharply.
San Jose del Cabo International Airport is a major airport serving Mexico’s Baja California Peninsula, posing with American Airlines McDonnell Douglas MD-80 or the “Super 80” aircraft in the prospect, as well as Switzerland, British Airways and Hainan aircraft in the rear.
Starting March 10, China announced additional tariffs on major farm products including chicken, pork, soy and beef, including chicken, pork, soy and beef, as well as a series of new export restrictions on about two dozen other U.S. companies.
In Canada, Prime Minister Justin Trudeau said his country would impose a 25% tariff on about $100 billion worth of U.S. goods in three weeks, even a $20.7 billion duty, an immediate duty that will remain in place. The Prime Minister has previously said Canada will target American beer, wine, bourbon and household appliances, as well as Florida orange juice.
“Tariffs will undermine an incredibly successful transaction relationship,” Reuters reported.
South of the border, Mexican President Claudia Sheinbaum said Tuesday that the country would respond with its retaliatory tariffs on U.S. goods. She said she will announce the product to be announced by taxes at a public event in Central Mexico City Plaza on Sunday, and her non-temporary reaction may indicate that Mexico still hopes that the trade war launched by U.S. President Donald Trump will be measured.
A person is sweeping at a research base for giant panda breeding in Chengdu. The tariff war will create chaos that a man and a broom will not be able to sweep.
Trump on Tuesday placed the levy president on all Chinese goods in his 10% tariff on Chinese goods last month, including products such as electronics, footwear, medicines and cosmetics. The new tariffs complement the tariffs that have been reached during Trump’s term.
Economists warn that new tariffs will lead to higher prices for U.S. consumers and launch a trade war among major U.S. trading partners.
Before the new tariffs came into effect, Canada, Mexico and the United States formed one of the world’s largest free trade zones, with a population of more than 510 million and an economy’s nominal GDP of $30.997 trillion. This figure is almost 30% of the global economy and the largest of any trading group in the world.
The group is the result of the USMCA trade agreement, one of President Trump’s signature agreements. The USMCA Trade Agreement was between the United States of America, the United States of Mexico and Canada and replaced the North American Free Trade Agreement implemented in 1994, known as NAFTA.
Tuesday’s move could lead to a trade-trade war among four trading partners, which would benefit little and hurt businesses and consumers in all four countries.
Jonathan Spira contributes research and reports to this story.
(Photo: Accurate Media Group)
