The trade war is getting worse as China and Canada respond to U.S. taxes.
After new U.S. tariffs went into effect, China said it would put up to 15% more tariffs on some U.S. goods, and Canada said it would put up to 25% more tariffs on U.S. goods.
China and Canada quickly responded to the new U.S. tariffs by putting their own taxes on U.S. goods, which could make it even harder for the U.S. to trade with its top three trading partners.
Just after midnight on Tuesday, the U.S. put a 25% blanket tax on goods coming from Canada and Mexico. Goods coming from China also got an extra 10% tariff. More than 40% of all goods bought in the U.S. last year came from these three countries, which are also its top three export markets.
Canada has promised to put up to 25% taxes on some U.S. goods, and China has said it will put up to 15% more on some goods. The economy ministry of Mexico said that President Claudia Sheinbaum would say what she would do at a news meeting in Mexico City on Tuesday morning.
Chicken, wheat, corn, and cotton will all be taxed 15% more by China starting March 10. Sorghum, soybeans, pork, beef, fruits, vegetables, dairy, and aquatic goods will all be taxed 10% more.
The Customs Tariff Commission of China said in a statement, “The unilateral tariff increase by the U.S. hurts the multilateral trade system, makes things harder for American businesses and consumers, and weakens the basis of economic and trade cooperation between China and the U.S.”
The U.S. tariff is on top of the 10% tariff that President Trump put on Chinese items on February 4. China also reacted right away to that tariff by putting its own 10% to 15% tariffs on U.S. goods like coal, liquefied natural gas, crude oil, farm equipment, and big cars.
Canada had said earlier that it would put 25% taxes on 107 billion Canadian dollars’ worth of American goods if the U.S. tariff went into effect as planned.
In a statement released late Monday, Canadian Prime Minister Justin Trudeau said that tariffs will start on $20.7 billion worth of goods right away and on the other $86.3 billion worth of U.S. goods in 21 days. He said they would stay until the U.S. trade move was taken back.
Trudeau said, “The U.S. tariffs will make Americans pay more for groceries, gas, and cars, and they could cost them thousands of jobs.” “Tariffs will mess up a trading relationship that is currently going very well.” They are going to break the trade deal that President Trump made during his last term.
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