The trade tensions between the United States and China have intensified, with China vowing to take “all necessary countermeasures” against the US’s new tariffs.
The US has announced that it will impose an additional 10% tariff on Chinese imports, effective Tuesday.
This move comes after US President Donald Trump announced that he would impose sweeping 25% levies on Canadian and Mexican imports, citing concerns over illegal immigration and the fentanyl crisis. The tariffs on Canada and Mexico will also take effect on Tuesday.
China’s commerce ministry has responded to the US’s move, stating that the tariffs will “seriously impact dialogue” between the two countries on narcotics control. China has also accused the US of “shifting the blame” for the fentanyl crisis, which China claims is a US problem.
Retaliation Expected
China has promised to take countermeasures to defend its legitimate rights and interests. The country’s foreign ministry has warned that the tariffs will increase the burden on American companies and consumers and undermine the stability of the global industrial chain.
The trade tensions between the US and China have sent shivers through major exporter countries, with Asian markets experiencing significant losses. The Toronto stock market also fell sharply in response to the news.
Canada and Mexico Respond
Canadian Prime Minister Justin Trudeau has expressed his opposition to the tariffs, stating that less than 1% of fentanyl and undocumented migrants entering the US come through the Canadian border. Trudeau has vowed to respond immediately if the tariffs are imposed.
Mexican President Claudia Sheinbaum has also expressed her concerns, stating that she hopes to speak with Trump to avoid the tariffs. A high-level Mexican delegation is currently in Washington, seeking an agreement.
The escalating trade tensions between the US and China, as well as the US’s disputes with Canada and Mexico, have significant implications for the global economy. As the situation continues to unfold, businesses and investors around the world are bracing for the potential impact.