US President Donald Trump has imposed additional duties on imports of goods from Canada, Mexico, and China amid “the threat posed by illegal immigrants and drugs.”
This was reported by the White House press service.
Duties for China will be 10% and for Canada and Mexico – 25%. Tariffs on energy from Canada will be 10%.
“We must protect Americans, and it is my duty as president to keep everyone safe,” Trump said.
He had already promised to impose tariffs. About 20-25% of the US refining industry uses oil from Canada. More than 70% of Canada’s total exports are to the United States. Approximately 64% of all US fruit and vegetable imports come from Mexico.
In response, Prime Minister Justin Trudeau said Canada would impose retaliatory 25% duties on almost $107 billion of goods from the United States. The duties on $20.6 billion will take effect on February 4, the same day as the US duties, and the rest will take effect three weeks later.
The duties will affect imports of American beer, wine, bourbon, fruits, and juices, including orange juice from Trump’s home state of Florida, clothing, sporting goods, and household appliances. Trudeau emphasized that Trump’s actions will have real consequences for the American people.
Reuters reports that in 2023, Canada exported about $378 billion worth of goods and services to the United States, more than 3/4 of its total exports. Energy accounted for 30% of exports, and manufacturing accounted for about 15%. Exports to the United States account for approximately 17.8% of Canada’s GDP and more than 2.4 million jobs in Canada.
Mexican President Claudia Sheinbaum rejected US accusations of her government’s ties to drug cartels. She called for solving problems through dialogue, not by imposing tariffs.
China expressed “deep disappointment” over Trump’s actions and will file a complaint with the World Trade Organization. The country promises to take countermeasures to protect its rights and interests without specifying specific actions.
During Trump’s first presidential term, China responded with symmetrical duties. However, the possibilities are limited, as the volume of US exports to China is significantly lower than Chinese exports to the US.
Trump has also promised to impose tariffs on goods from the European Union because Europe is “treating the United States terribly” and not buying American goods. He said the measures would be “significant” but did not specify any other details.
The cryptocurrency market plummeted after Trump imposed new trade tariffs on China, Canada, and Mexico. Bitcoin dropped to $91,695, and Ether lost 22.7% of its value due to the outflow of investors from risky assets. The fall in the crypto market occurred amid a decline in Wall Street futures by more than 1.5% as traders prepared for an escalation of the trade war.