United States : President Trump Imposes New Tariffs

United States President Donald Trump’s new 25 per cent tariffs on imports from Mexico and Canada have taken effect, along with a doubling of duties on Chinese goods to 20 per cent, launching new trade conflicts with the top three US trading partners. The tariff actions, which could upend nearly $2.2 trillion in two-way annual US trade, went live on Tuesday, hours after Trump declared that all three countries had failed to do enough to stem the flow of the deadly opioid fentanyl and its precursor chemicals into the US. China responded immediately after the deadline, announcing additional tariffs of 10 per cent and 15 per cent on certain US imports from March 10 and a series of new export restrictions for designated US entities. Beijing officials have said they would fight to the “bitter end” if the US continues its trade actions, urging a return to negotiations.
Canada and Mexico, which have enjoyed a virtually tariff-free trading relationship with the US for three decades, were poised to immediately retaliate against their longtime ally. Canadian Prime Minister Justin Trudeau said Ottawa would respond with immediate 25 per cent tariffs on $20.7bn worth of US imports, and on another $86.2bn if Trump’s tariffs were still in place in 21 days. He said previously that Canada would target US beer, wine, bourbon, home appliances and Florida orange juice.  “Tariffs will disrupt an incredibly successful trading relationship,” Trudeau said, adding that they would violate the US-Mexico-Canada free trade agreement signed by Trump during his first term. At press time, Mexico was also expected to announce its own response.
Stock markets around the world have fallen following the introduction of tariffs with analysts...