Canada and Mexico have announced plans for retaliatory tariffs after the U.S. imposed a 25% import tax on their goods and a 10% tariff on Chinese imports.
Shritika Thapa
Sun Feb 02 2025
U.S. President Donald Trump has signed an executive order imposing tariffs on imports from Canada, Mexico, and China, starting Tuesday. Canadian and Mexican goods will face a 25% tariff, while Chinese imports will have a 10% tariff. Canadian crude oil imports will be taxed at 10%, and Trump has removed Canada’s small-package tariff exemption.
The White House justified the move, blaming Canada and Mexico for illegal fentanyl and immigration issues. Both countries have threatened to retaliate. Canadian Prime Minister Justin Trudeau vowed a “forceful response,” while Mexican President Claudia Sheinbaum said her government has multiple strategies ready.
Economists warn the tariffs could hurt the U.S. economy, increasing costs for consumers and businesses. Trump insists they will boost domestic manufacturing and dismisses concerns about inflation. He also pledged new tariffs on semiconductors, pharmaceuticals, steel, aluminum, and oil, and warned of potential tariffs on the European Union.
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