Canada, Mexico announce retaliatory tariffs against US; China turns to WTO
CANADA and Mexico have announced retaliatory measures, while China is turning to the World Trade Organization (WTO), in response to US President Donald Trump’s decision to slap sweeping tariffs on the United States’ largest commercial partners.
Prime Minister Justin Trudeau said on Sunday (Feb 2) that Canada would impose 25 per cent tariffs on C$155 billion (S$145 billion) worth of US goods in response to Trump’s tariffs.
China, for its part, said it “firmly opposes” the new tariffs, and that it will take “corresponding countermeasures to resolutely safeguard our own rights and interests”.
These announcements came a day after Mexican President Claudia Sheinbaum said she had ordered her economy minister to implement tariff and non-tariff measures to defend Mexico’s interests.
Trump on Feb 1 signed an executive order imposing 25 per cent tariffs on all goods from Canada and Mexico, and 10 per cent on goods from China starting on Feb 4, risking a new trade war that economists said could slow global growth and reignite inflation.
Trudeau said tariffs on some C$30 billion of goods will take effect from Feb 4, and C$125 billion in 21 days.
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He said the tariffs will apply to “everyday items” such as American beer, wine and bourbon, as well as fruits, vegetables, consumer appliances, lumber and plastics, “with much, much more”.
He encouraged Canadians to buy Canadian products and vacation at home rather than in the US.
He said some non-tariff measures, including some relating to critical minerals, energy procurement and other partnerships, are being looked at.
“We’re certainly not looking to escalate, but we will stand up for Canada, for Canadians, for Canadian jobs,” Trudeau said.
He added that the trade conflict will have “real consequences” not only for Canadians, but also for Americans, including job losses, higher costs for food and petrol, potential shutdowns of auto assembly plants, and impeded access to Canadian nickel, potash, uranium, steel and aluminium.
‘Split us apart’
Trudeau offered a reminder that Canada has been at the US’ side in its “darkest hours”, from the Iran hostage crisis and war in Afghanistan, to deadly natural disasters such as Hurricane Katrina and the recent California wildfires.
“We’re always there, standing with you,” he said.
“If President Trump wants to usher in a new golden age for the United States, the better path is to partner with Canada, not to punish us.
“Unfortunately, the actions taken today by the White House split us apart instead of bringing us together.”
China’s Commerce Ministry, meanwhile, slammed Washington’s “erroneous practices”, saying Beijing was “strongly dissatisfied with this and firmly opposes it”.
The ministry said Beijing would file a lawsuit at the WTO, arguing that “the unilateral imposition of tariffs by the United States seriously violates WTO rules”.
It said the duties were “not only unhelpful in solving the US’ own problems, but also undermine normal economic and trade cooperation”.
“China hopes that the United States will objectively and rationally view and deal with its own issues like fentanyl, rather than threatening other countries with tariffs at every turn,” the Commerce Ministry said.
It said Beijing “urges the US to correct its erroneous practices, meet China halfway, face up to its problems, have frank dialogues, strengthen cooperation and manage differences on the basis of equality, mutual benefit and mutual respect”.
We’re ready
In a lengthy post on social media platform X, Sheinbaum stressed that her government does not seek confrontation with its northern neighbour but collaboration and dialogue.
“I’ve instructed my economy minister to implement the plan B we’ve been working on, which includes tariff and non-tariff measures in defence of Mexico’s interests,” she posted, without going into detail on what US goods her government will target.
The US is by far Mexico’s most important foreign market, while Mexico in 2023 overtook China to become the top destination for US exports.
Mexico has been preparing possible retaliatory tariffs against imports from the US, ranging from 5 per cent to 20 per cent, on pork, cheese, fresh produce, as well as manufactured steel and aluminium, according to sources familiar with the matter.
The auto industry would initially be exempt, it said.
US exports to Mexico accounted for more than US$322 billion in 2023, Census Bureau data showed, while the US imported more than US$475 billion worth of Mexican products.
In her post, Sheinbaum also rejected as “slander” the allegation by the White House that drug cartels have an alliance with the Mexican government, a point used by the Trump administration to explain why it had imposed the tariffs.
Trump said the tariffs against Mexico were due to the country’s failure to stop fentanyl getting into the US, as well as what he describes as uncontrolled migration.
Sheinbaum touted her government’s record since she took office last October, seizing 20 million doses of deadly synthetic opioid fentanyl, in addition to detaining over 10,0000 individuals tied to drug trafficking.
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