U.S. President Donald Trump has pushed into the territory of the New Trade Law under the Emergency Sanctions to impair Canada and Mexico and to punish additional obligations for Chinese products.
Trump signed three different administrative orders on Saturday and imposed a world -class criticized tariff.
The following is what you need to know about Trump’s tariffs and how the affected countries have retaliation.
What is Trump’s tariff plan?
It imposes a 10 % invoice for all imports from China, and has a 25 % collection of products from Mexico and Canada.
One exception of this is Canada’s energy products such as petroleum, natural gas, and electricity, which is taxed at 10 %.
According to the White House officials, this tariff has no exception, and it is currently applied to the import value of less than 800 dollars, but is now duty -free.
Why does Trump impose these tariffs?
Trump has accused him of calling the international emergency economic power law (IEEPA) to impose taxes, and is not enough to stop the target country illegal immigrants and drug trafficking to the United States.
The purpose is to keep illegal immigrants and to be responsible for their promises to stop the toxic Fentanyl and other drugs from flowing into Japan.
This action imposes policies that believe that it will help you to create a wide range of tariffs, a threat to repeated Trump campaigns, which will help you, create income, protect US employment, and create leverage. I am.
The word “tariff” is often joking, “the most beautiful word in the dictionary.”
Trump repeatedly stated that Canada would be the “51st states”, and in January, Trump called his neighbor in the World Economic Forum in Davos, Switzerland.
“We have a tremendous deficit with Canada. It’s no longer. Mr. Trump said another way to avoid tariffs.
“Probably, as you know, I say:” You can always be a nation, and if you are the nation, we will not have a deficit. We will do tariffs on you. I don’t need it, “said Trump.
When will the tariff start to come into effect?
According to Trump’s presidential order, tax collection is started on Tuesday 12:01 am (05:01 GMT). However, before entering the United States at 12:01 am on Saturday, imports are exempted to import or final transport mode loaded on ships.
According to the White House, the tax is “until the crisis is alleviated”.
How did Canada react to Trump tariffs?
Canadian Prime Minister Justin Trudeau has dissatisfied that Ottawa responded in the actual thing, with 25 % of tariffs in US imports to $ 155 billion.
These tariffs include fruits and fruit juice, including orange juice in the hometown of Florida, American beer, wine, bourbon, and florida. Canada also targets products such as clothing, sports equipment, and home appliances.
Tordeau questioned why Trump’s historic US Canadian partnership was “the strongest we’ve ever seen.”
According to the U.S. government, Canada is the largest buyer of national products in 2022, accounting for $ 356.5 billion. In 2023, an estimated $ 2.7 billion product and services crossed the US Canadian border every day.
“The White House’s actions do not connect us, but we separate us,” said Tordeau. “We did not seek this, but we will not retreat.”
As the next Prime Minister of Canada, Mark Carney, who took over Torudo, also blamed Trump’s tariffs, and Canada said, “Configue” and “confronting bullying.”
President Trump believes we are pushing. He doesn’t know Canadian.
We confront our country. We unite. We will be strong. together. pic.twitter.com/xypitjuwkp
-Mark Carney (@markjCARNEY) February 2, 2025
How did Mexico react to Trump tariffs?
Mexico’s President Claudia Symbaum ordered retaliation duties on Saturday according to all products from Mexico.
In a long post, Shanbaum said that her government had been forced to respond to the actual thing instead of confronting the northern top trade partner, but Mexico had to respond.
“I instructed the Minister of Economic to implement the plan B we have been working on. This includes tariffs and non -tariff measures to protect Mexico’s profits,” said Symbaum. Posted without specifying US products.
The United States is the most important foreign market in Mexico, and in 2023 Mexico overtook China as the largest destination for exports in the United States.
Mexico is preparing retaliation tariffs on imports from the United States, which is a pork, cheese, fresh agricultural products, manufactured steel, and 5 % to 20 %, according to the information that is familiar with this problem. They said the automotive industry would be initially exempted.
According to the Minister of Economy, Economy of Marcerado, Trump’s tariff was a “serious violation” of the US-Mexico-Canada agreement.
“Plan B is in progress,” said Ebrad. “We will win!”
The US exports to Mexico accounted for more than $ 322 billion in 2023, and the United States has imported more than $ 47.5 billion Mexico products.
In her post, Symbaum also refused the White House’s claim that the drug quartel had an alliance with the Mexican government.
How was China’s reaction to tariffs?
The Chinese government accused the demands of tariffs and Trump, accused Beijing that it was necessary to stop the flow of Fentanyl, a fatal opioid.
Beijing will disagree with Trump’s tariffs in the symbolic gesture World Trade Organization (WTO), and implement an indefinite “countermeasures” in response to the collection that will be enabled on Tuesday. The Ministry of Commerce mentioned.
The reaction repeatedly repeated the language that was measured by Beijing for a few weeks, rather than an immediate escalation that marked the Chinese trade confrontation with Trump in his first term of his first term.
China’s tone -down response showed the contrast between direct retaliation from Canada and Mexico and intense languages.
The Ministry of Commerce in China stated in a statement that Trump had “seriously violate” the international trade rules and urged the United States to “engage in frank dialogue and strengthen cooperation.”
A lawsuit against the WTO may win in Beijing by confronting a rule -based trading system that has long been proposed by the US administration for the two parties for a long time. Beijing has taken the same steps in the European Union’s up to 45 % of the tariffs on Chinese electric vehicles.
At the same time, WTO’s appeal does not have an immediate cost or threat to Washington.
China’s sharpest pushback was Fentanill, which was urging Beijing to crack down on the shipment of Chinese -made precursor chemicals in Beijing to be in Beijing.
“Fentanyl is a problem in the United States,” said the Ministry of Foreign Affairs in China. “The Chinese side conducted a wide range of anti -drug cooperation with the United States and achieved surprising results.”
Has similar duties used in the United States in the past?
The closest to Trump’s action was that President Richard Nixon used a trading with the 1917 enemy, Jeep’s President’s Law. Payment crisis after the dollar is separated from the gold standard.
The court supported Nixon’s actions, but said Jennifer Hillman, a professor at the University of George Town University and a former World Trade Organization Appeal Judge Jennifer Hillman. 。
The IEEPA method Nixon’s decision -making language suggests that there is a need to have a causal relationship between emergency and immigrants.
“At least for me, I don’t think there is such a connection,” said Hillman. “Since customs duties are not applied only to Fentanyl, the reason why all products are” necessary “to deal with Fentanyl or immigration issues is not a clear reason. “
She added that the use of Nixon has a much clearer connection between the import level and the value of the dollar.
What are experts saying?
Economic experts say that tariffs are likely to slow down the economic growth of all stakeholders, but are likely to promote inflation.
“Until now, the market was on the side of Trump, but this could change, and the market could challenge him for the first time,” said Siebert Fincial’s highest investment manager. Mark Malek states.
A new analysis by the Yale Budget Laboratory stated that the average household would lose the $ 1,170 of tax income, which could damage the US economy.
Former Economist, Former U.S. Finance Lawrence Summers, said, “Employment of Industrial Heartland is lost because of its high investment costs and cannot compete with American producers.”
He said in X, that Canada and Mexico have lost their trust in the United States, and the impact on supply chains will be “strategic gifts.”
“Bullying does not win over time in playgrounds and international fields,” said Samers.
