Today's Edition
Beijing (dpa)
China and Canada have responded to new US tariffs that took effect on Tuesday by imposing retaliatory measures on imports from the United States, fuelling fears of a global trade war. New US tariffs on goods from Mexico, Canada and China came into force on Tuesday, the White House announced on Monday.
Washington imposed an import fee of 25% on goods from Mexico and Canada and raised tariffs on Chinese products from 10% to 20%. Hours before the US tariffs took effect at midnight (0500 GMT Tuesday), Canadian Prime Minister Justin Trudeau said Canada would introduce matching 25% tariffs on up to $155 billion (US$107 billion) worth of imports from the United States if Washington proceeded
with the tariffs.
China announced on Tuesday that it was imposing new tariffs on key agricultural imports and imposing further restrictions on US companies.
A statement by Mexican President Claudia Sheinbaum is expected later on Tuesday.
The punitive tariffs on Canadian and Mexican imports mark a sharp escalation in trade tensions, raising fears of a North American trade war with unpredictable consequences for the global economy. The announcement sent stock markets tumbling.
Beijing's Ministry of Commerce said that starting on March 10, China will impose a 15% tariff on chicken, wheat, corn and cotton from the US. Other agricultural products, including soybeans, beef will be subject to a 10% additional duty.
China also warned that more US companies would be added to its list of unreliable entities, potentially leading to restrictions or outright bans on doing business in China.
Foreign Ministry spokesman Lin Jian said China rejects the US measures and that the countermeasures by the People's Republic are necessary to protect Chinese rights and interests.
He advised the US to return to the path of dialogue and cooperation.
Canada stands firm
Trudeau said on Monday that Canada would start with tariffs on $30 billion worth of goods immediately, with tariffs imposed on the remaining $125 billion on American products in 21 days' time.
"Our tariffs will remain in place until the US trade action is withdrawn, and should US tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures," he added.
This suggests Canada might be willing to pause or even stop oil exports to its southern neighbour, a move that could have severe consequences for the US.
EU 'deeply regrets' US tariffs
Trump has also said he plans to impose tariffs on imports from the European Union.
A spokesman for the European Commission said Tuesday the bloc "deeply regrets" the US decision to slap tariffs on goods from Canada and Mexico.
"This move risks disrupting global trade, harming key economic partners, and creating unnecessary uncertainty at a time when international cooperation is more crucial than ever," the spokesman said.
"These tariffs threaten deeply integrated supply chains, investment flows, and economic stability across the Atlantic," he added.
"The EU stands firmly against protectionist measures that undermine open and fair trade. We call on the United States to reconsider its approach and work towards a cooperative, rules-based solution that benefits all parties."
German Economy Minister Robert Habeck said the EU would not be "pushed around" by US tariffs.
"If President Trump imposes the announced tariffs on EU products, we will react with unity and self-confidence," said Habeck.
"We are walking into a comprehensive tariff conflict with our eyes wide open," said Habeck, warning of a "tariff spiral" after the announcement of retaliatory measures by Canada and China.
