US President Donald Trump’s tariffs on Canada, China and Mexico have come into effect. In response, all three nations have announced retaliatory measures. As the trade war escalates, here’s how American businesses and consumers will be hit
US President Donald Trump’s long-threatened tariffs are here, plunging the country into an escalating trade war with China, Canada and Mexico.
Trump’s 25 per cent tariffs on imports from Canada and Mexico went into effect Tuesday (March 4), along with a heightened 20 per cent levy on Chinese goods. In response, all three countries announced retaliatory measures.
Experts say consumers and businesses will be the hardest hit. Companies big and small will face higher costs on the goods they buy from other countries — and could have little recourse but to hike prices themselves. For consumers, that will likely mean more expensive price tags on everything from cars, appliances and other big-ticket items to smaller, everyday purchases including electronics, gasoline and groceries.
What measures have Canada, Mexico and China taken?
Canada, Mexico and China all declared on Tuesday (March 4) that they would impose retaliatory taxes on many US products.
China is imposing tariffs of up to 15 per cent on a wide array of key US farm exports, including American-grown chicken, pork, soy and beef. It also expanded the number of US companies subject to export controls and other restrictions by about two dozen.
Meanwhile, Canadian Prime Minister Justin Trudeau announced that his country would slap tariffs on more than $100 billion of American goods over the course of 21 days. And Mexican President Claudia Sheinbaum said her country will respond with its own retaliatory tariffs on US goods. Unlike Canada or China, however, she said she would not announce specific tariffs until Sunday (March 8) — possibly indicating that Mexico still hopes to de-escalate the trade war.
“All of the economies involved in the tariffs will see a loss in their real GDP (gross domestic product) and increasing consumer prices in general,” said Wendong Zhang, an assistant professor of applied economics and policy at Cornell University.
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