Tariffs of 25% on Canada and Mexico, and an additional 10% on China, as enacted by Trump
Canada imposes retaliatory tariffs, and China utilizes non-tariff measures… Attention on US negotiations citing “possible compromise point”
In a move affecting both allies and adversaries, President Donald Trump of the US imposed full tariffs on neighboring allies Canada and Mexico on the 4th (local time), and additional tariffs on China, which led these countries to promptly engage in retaliatory measures. This rapid escalation of tariffs and countermeasures, beyond mere words, is turning Trump’s global trade war into a tangible conflict.
At 12:01 AM Eastern Standard Time on the 4th, the US enacted tariffs of 25% on Mexico and Canada (10% only on energy from Canada), and increased tariffs to 20% on China. Canada and Mexico, both under the United States-Mexico-Canada Agreement (USMCA), symbolize through these tariffs that there are no exceptions in consideration of US interests, even for close allies like Canada.
On the same day, China enacted an additional 10% tariff as previously announced, amending the existing “10%” administrative order to “20%.”
China quickly targeted major US exports such as agricultural products for retaliatory tariffs. The Chinese State Council Tariff and Levy Committee announced on the 4th that they would impose an additional 15% tariff on 29 US items including chicken, wheat, and corn, and an additional 10% on 711 items including soybeans, pork, beef, seafood, fruits, vegetables, and dairy products starting on the 10th of this month. They also added 15 companies to an export control list and 10 companies to an unreliable entities list as part of their sanctions.
Separately, China halted imports of soybeans from three US companies, citing the presence of ergot and seed coatings, and stopped wood imports due to quarantine-targeted pests such as bark beetles and longhorn beetles, employing non-tariff measures as retaliation.
Chinese Foreign Ministry Spokesperson Lin Jian stated during a regular briefing on the 4th that China’s tariff responses to US tariffs aim to protect its own interests, emphasizing, “Imposing extreme pressure on China indicates misplaced judgment and wrong calculations.” He stressed that China will continue to fight if the US persists with tariff wars, trade wars, or any other conflicts.
Trump has cited reasons such as inadequate border control by Canada, Mexico, and China for imposing national tariffs, as well as the supply and manufacturing of the narcotic fentanyl, and its smuggling into the US, although he has openly referred to countering China’s influence and reducing trade deficits as significant reasons.
In response, Canadian Prime Minister Justin Trudeau criticized Trump’s tariffs as “foolish acts,” and announced plans to file a complaint with the WTO. He asserted that Canada would impose a 25% tariff on US products worth 155 billion Canadian dollars (156 trillion won), labeling Trump’s trade war as baseless and without legitimacy.
Canada is set to impose a 25% tariff on US goods worth 30 billion Canadian dollars (30.3 trillion won) starting on the 4th, with tariffs on the remaining products worth 125 billion Canadian dollars (125.8 trillion won) to follow within 21 days. The targeted goods reportedly include orange juice, peanut butter, wine, and coffee.
Trudeau stated, “Canadians do not back down in fights” and mentioned that non-tariff responses would also be explored if tariffs persist.
In retaliation, Trump threatened to impose equivalent reciprocal tariffs if Canada carries out its retaliatory tariffs. On Truth Social, his social network platform, he mocked Trudeau by calling him “Governor Trudeau,” and iterated this stance.
Mexico has also vowed to use all retaliatory measures, including non-tariff actions, following the US imposition of a 25% tariff on Mexican imports. President Claudia Sheinbaum of Mexico announced on the 4th during a regular press conference that the unjust tariffs help no one, and then countered Trump’s claims about insufficient efforts to curb the import of fentanyl by detailing ongoing decisively measures and bilateral talks on trade and security.
Sheinbaum will unveil Mexico’s detailed response during a rally in the main square of Mexico City, at Zócalo, on the 9th. She indicated hopes for reaching an agreement, mentioning that how her government responds depends on the US, leaving room for negotiation until the mentioned date.
Despite the escalating tariff war, potential for compromise remains open as Trump administration plans additional 25% tariffs on steel and aluminum starting on the 12th of this month, followed by “reciprocal tariffs” on a range of US imports by April 2, considering non-tariff trade barriers.
Notably, US Commerce Secretary Howard Rutnick stated post-implementation of these tariffs that President Trump might announce a tariff compromise with Canada and Mexico, effectively hinting at cooperation with these countries.
Prime Minister Trudeau expressed readiness to engage in talks with President Trump within days, and President Sheinbaum noted intentions to communicate with Trump before the rally on the 9th, indicating ongoing negotiations might lead to adjusted tariffs.