Sun, 02 Feb 2025

Trump imposes tariffs but Canada and Mexico hit back

The US president will tax imports from America's three largest trading partners. Both Canada and Mexico plan retaliatory tariffs.

* US President Donald Trump has announced tariffs on goods imported from its three largest trading partners: China, Mexico, and Canada.
* Tariffs will be 25% on Canada and Mexico, and 10% on China, with Canadian energy facing a lower 10% tariff.
* The US is targeting the countries over concerns about illegal immigration and drug trafficking, particularly fentanyl exports from China.
* Canada and Mexico have announced retaliatory tariffs of their own, with Canada imposing 25% tariffs on $155bn worth of American goods.
* China has said it strongly dissatisfies with the levies and will file a lawsuit with the World Trade Organization.
* Economists warn that the tariffs and subsequent retaliation could raise prices on a wide range of products, including cars, lumber, and food.
* Industry groups have expressed alarm at the potential impact on livelihoods and businesses in all three countries.
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