Global trade tensions are reaching new heights as China and Canada have fired back against newly imposed U.S. tariffs. In response to the latest trade measures by Washington, both countries announced significant tariffs on American goods, a move that could further disrupt economic relations among North America’s largest trading partners and China.
China and Canada Respond to U.S. Tariffs
On Tuesday, China and Canada swiftly retaliated against U.S. tariffs that took effect at midnight. The U.S. imposed a 25% tariff on imports from Canada and Mexico and an additional 10% tariff on Chinese goods—a decision that has already sparked international backlash.
In response, China’s government announced new levies on American products, including a 15% tariff on chicken, wheat, corn, and cotton and a 10% tariff on soybeans, pork, beef, fruits, vegetables, and dairy products. These measures will come into effect on March 10, 2025.
Canada, on the other hand, has imposed 25% tariffs on $107 billion worth of U.S. goods. The first round of tariffs, affecting $20.7 billion in imports, takes effect immediately, while the remaining $86.3 billion in tariffs will be introduced in the next 21 days. Canadian Prime Minister Justin Trudeau made it clear that these tariffs will remain in place until the U.S. withdraws its trade measures.
Escalating Trade War Between the U.S. and China
This latest trade clash follows previous tensions between the U.S. and China. In February, the Biden administration raised tariffs on Chinese coal, liquefied natural gas, crude oil, agricultural machinery, and large-engine vehicles. In response, China had already hit back with tariffs ranging from 10% to 15% on a range of U.S. goods.
China’s Customs Tariff Commission issued a firm statement, condemning the “unilateral tariff increase by the U.S.” and warning that it “undermines the foundation of China-U.S. economic and trade cooperation.” Chinese officials argue that these measures will ultimately harm American businesses and consumers, leading to increased costs for essential goods.
Impact on North American Trade
For Canada, the situation is particularly concerning as it shares a massive trade relationship with the U.S. Prime Minister Trudeau strongly criticized the U.S. move, warning that it would have “severe consequences on both economies.” He emphasized that “Americans will pay more for groceries, gas, and cars” and warned that these tariffs could lead to job losses in key industries.
Mexico’s response is still pending, with President Claudia Sheinbaum expected to make an announcement later today in Mexico City. However, given past trade tensions, Mexico is likely to introduce countermeasures against U.S. imports.
What’s Next?
The latest developments suggest that the global trade war is far from over. While U.S. officials claim these tariffs are necessary to protect domestic industries, many economists warn that escalating trade disputes will hurt consumers and businesses on all sides.
As the situation unfolds, all eyes will be on Mexico’s response and whether further negotiations can de-escalate tensions before the global economy takes a significant hit.
