The United States has officially enacted new tariffs on its top three trading partners—Mexico, Canada, and China—escalating tensions in global trade. President Donald Trump’s administration implemented a 25 percent tariff on imports from Mexico and Canada, alongside a doubling of duties on Chinese goods to 20 percent.
The tariffs, which went into effect at 12:01 a.m. EST on Tuesday, could disrupt nearly $2.2 trillion in annual U.S. trade. Trump justified the move by accusing all three nations of failing to curb the flow of the deadly opioid fentanyl and its precursor chemicals into the U.S.
China swiftly responded, announcing additional tariffs of 10 and 15 percent on certain U.S. imports starting March 10, as well as new export restrictions on designated U.S. entities. Canada and Mexico also vowed to retaliate, with Canadian Prime Minister Justin Trudeau announcing immediate 25 percent tariffs on $20.7 billion worth of U.S. goods and the possibility of expanding them to $86.2 billion if the U.S. tariffs remain in place for 21 days. Mexico’s response is expected to be unveiled later today.
The trade dispute adds another layer of uncertainty to global markets and raises concerns about disruptions in supply chains, particularly in the tech and agricultural sectors.
