China and Canada have announced retaliation against the US after Donald Trump imposed his drastic tariff plan in the middle of the night.
The US tariffs have come into effect with 25% tariffs on goods from Canada and Mexico, the two largest trading partners in the US, and 20% tariffs on China, double China's collection since last month.
This obligation affects more than $9.188 billion in US imports from Canada and Mexico.
China said Tuesday that it would impose new tariffs on the scope of agricultural imports from the US next week. Its Treasury said an additional 15% tariff would be imposed on chicken, wheat, corn and cotton, and an additional 10% tariff is involved in sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables and dairy products.
Asian markets fell when they opened on Tuesday, with Japan's Nikkei index falling by more than 2%, while Hong Kong's Hangsen fell by 1.5%.
Canadian Prime Minister Justin Trudeau said Ottawa will respond with a 25% tariff on imports worth $300 billion ($20.7 billion). He previously said Canada will target American beer, wine, bourbon, household appliances and Florida orange juice.
If Trump's tariffs were still in place in 21 days, the tariffs would be placed on $125 billion ($86.2 billion) of US goods.
“Taxes will disrupt a very successful trading relationship,” Trudeau said, adding that they will violate the US-Canada free trade agreement that Trump signed during his first term.
Mexican president Claudia Sinbaum was expected to announce her response Tuesday morning, the country's economy ministry said.
Trump and his allies argue that higher tariffs on US imports from around the world will help make America great again by allowing them to gain political and economic concessions from allies and rivals at the global stage.
But businesses both within the US and around the world are warning of widespread disruption if the Trump administration pushes this strategy.
Since winning the November presidential election, the president has focused on China, Canada and Mexico, threatening three markets of exports, unless it reduces the “unacceptable” level of illegal drugs going to the US.
He slapped 10% tariffs in China last month, but Trump repeatedly delayed the imposition of tariffs in Canada and Mexico. The president has pledged to lower prices in the US, but the economist warned that domestic consumers could become disgusted by his trade plans.
The 25% tariff in Canada and Mexico and the 10% tariff in China will be “the largest tax increase in at least one generation.” According to For the Peterson Institute for International Economics, this move comes to ThinkTank, which estimates that a typical US household would cost more than $1,200 each year.
Trump vowed to go further, threatening to introduce “mutual” tariffs on countries that have their own obligations on products made in the United States. He says these will come into effect soon next month.
