The United States has imposed significant tariffs on imports from Mexico, Canada, and China, leading to quick retaliatory actions from the country’s North American neighbors.
US President Donald Trump signed three executive orders on Saturday, imposing a 25 percent tariff on goods from Canada and Mexico, and a 10 percent tariff on all imports from China.
However, energy imports from Canada, such as oil, natural gas, and electricity, will be taxed at a 10 percent rate.
Trump justified the tariffs as necessary to protect Americans and pledged to maintain them until what he termed a national emergency in the US involving drug fentanyl and undocumented migration is resolved.
Mexico’s President Claudia Sheinbaum immediately announced retaliatory tariffs, while Canadian Prime Minister Justin Trudeau stated that his country would impose matching 25 percent tariffs on up to $155 billion in US imports.
There has been no immediate response from China.
Al Jazeera’s Kristen Saloomey, reporting from Detroit, expressed concerns about Trump’s actions on both sides of the border.
“Canadians have been very concerned about this, and Americans here in Detroit, where I am, have voiced worries about escalating prices. Economists are warning that a trade war could ensue from these tariffs, leading to price hikes and potentially pushing Canada into a recession,” she said.
Steep tariffs
Trump declared a national emergency under the International Emergency Economic Powers Act and the National Emergencies Act to support the tariffs, granting the president broad authority to impose sanctions in times of crisis.
These new tariffs fulfill Trump’s repeated threats during and after the 2024 presidential campaign, despite warnings from top economists that a trade war with the US’s primary trading partners would harm US and global economic growth, raise prices for consumers and businesses.
Tariff collections are set to begin at 12:01 am EST on Tuesday, according to Trump’s order. However, imports loaded onto a vessel or in transit before this time will be exempt from the tariffs.
The White House indicated that the tariffs would remain in place until the crisis is resolved, without specifying what actions the three countries would need to take to seek relief.
US officials stated that there would be no exclusions from the tariffs, and if Canada, Mexico, or China retaliated against US exports, Trump might increase the tariffs.
They mentioned that Canada would no longer qualify for the “de minimis” US tariff exemption for small shipments under $800, citing concerns about fentanyl trafficking through small packages from Canada and Mexico into the US.
‘Real consequences’
Trudeau, Canada’s prime minister, announced that Canadian duties on $30 billion of US alcohol and fruit imports would take effect when the US tariffs come into force on Tuesday. He warned American consumers of the impact the tariffs would have on prices of groceries and other goods.
Sheinbaum, the Mexican president, responded to Trump’s announcement by pledging retaliatory tariffs and other measures to defend Mexico’s interests.
Al Jazeera’s Julia Galiano, reporting from Mexico City, highlighted the significant impact the trade war would have on Mexico’s economy, given that 80 percent of the country’s exports go to the US.
Republicans in the US supported Trump’s actions, while industry groups and Democrats raised concerns about price impacts.
The National Foreign Trade Council expressed worries about the rising costs resulting from the tariffs and urged the US, Canada, and Mexico to find a swift resolution to prevent further escalation.
Senate Democratic Leader Chuck Schumer criticized Trump for potentially causing inflation with his tariffs, warning about the consequences on grocery prices, tomato prices, and car prices.
