Canada and Mexico hit back against Trump’s tariffs as Beijing vows ‘countermeasures’ – US politics live

Canada and Mexico hit back against Trump's trade tariffs as Beijing vows 'countermeasures'

Canada, Mexico and China have promised to hit back after the imposition of sweeping US tariffs announced by Donald Trump on Saturday.

Trump claimed the move was in response to a “major threat” from illegal immigration and drugs. Canadian and Mexican exports to the US will face a 25% tariff starting Tuesday, although energy resources from Canada will have a lower 10% levy.

Goods from China, which already face various rates of duties, will see an additional 10% tariff. A tariff is a domestic tax placed on goods as they enter a country, proportional to the value of the import.

Trump invoked the International Emergency Economic Powers Act in imposing the tariffs, with the White House saying “the extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl, constitutes a national emergency.”

The aim is to hold all three countries “accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country,” the White House added.

Donald Trump said the US would impose tariffs beginning on Tuesday of 25% on Canada and Mexico, along with an additional 10% tax on China. Photograph: ABACA/REX/Shutterstock

• How has China, Canada and Mexico reacted to the sweeping tariff announcement?

Agence France-Presse (AFP) reported a statement from China’s commerce ministry that it would take “corresponding countermeasures” and file a claim against Washington at the World Trade Organization.

Mexican President Claudia Sheinbaum announced that her country would impose retaliatory tariffs.

Sheinbaum said she had told her economy minister “to implement Plan B that we have been working on, which includes tariff and non-tariff measures in defense of Mexico’s interests.”

Canadian Prime Minister Justin Trudeau - who spoke with Sheinbaum - separately said his country would hit back with 25% levies of its own on select American goods worth Can$155 billion (US$106.6 billion), with a first round on Tuesday followed by a second one in three weeks.

“We’re certainly not looking to escalate. But we will stand up for Canada, for Canadians, for Canadian jobs,” he said, as he warned of a fracture in longstanding Canada-US ties.

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Japan 'deeply concerned' about how Trump's tariffs could impact the world economy

Japanese finance minister, Katsunobu Kato has expressed “deep concern” over the tariff proposal, which may spark a wider trade war as they threaten upheaval across supply chains, from energy to cars to food.

He told Fuji TV: “We’re deeply concerned about how these tariffs could affect the world’s economy.”

“Japan needs to scrutinise these policies and their effects, and take appropriate measures,” the minister was quoted by Fuji TV as saying.

Japanese prime minister Shigeru Ishiba is expected to meet Trump later this week in the US, according to reports, as Tokyo tries to strengthen ties with the new Trump administration. Japanese companies are worried that protectionist policies could dampen and disrupt global shipments.

South Korea’s acting President Choi Sang-mok, meanwhile, has ordered government agencies to closely monitor any impact on domestic firms and the economy after Trump ordered sweeping tariffs on goods from Mexico, Canada and China, his office said.

These tariffs are expected to affect South Korean companies running factories in these countries.

China, Mexico and Canada accounted for more than 40% of imports into America last year. US President Donald Trump, who has also threatened to impose tariffs against EU nations, says the new tariffs will help grown the US economy, raise tax issue and protect American jobs. However, critics, including many economists, have warned that additional costs will be passed onto American consumers, exacerbating an already acute cost of living crisis.

My colleague Lauren Aratani has done this useful explainer exploring how US consumers will be affected by the tariffs, why Trump is using them to enact his policy agenda and how other countries have responded to the US president’s announcement.

Canada and Mexico hit back against Trump's trade tariffs as Beijing vows 'countermeasures'

Canada, Mexico and China have promised to hit back after the imposition of sweeping US tariffs announced by Donald Trump on Saturday.

Trump claimed the move was in response to a “major threat” from illegal immigration and drugs. Canadian and Mexican exports to the US will face a 25% tariff starting Tuesday, although energy resources from Canada will have a lower 10% levy.

Goods from China, which already face various rates of duties, will see an additional 10% tariff. A tariff is a domestic tax placed on goods as they enter a country, proportional to the value of the import.

Trump invoked the International Emergency Economic Powers Act in imposing the tariffs, with the White House saying “the extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl, constitutes a national emergency.”

The aim is to hold all three countries “accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country,” the White House added.

Donald Trump said the US would impose tariffs beginning on Tuesday of 25% on Canada and Mexico, along with an additional 10% tax on China. Photograph: ABACA/REX/Shutterstock

• How has China, Canada and Mexico reacted to the sweeping tariff announcement?

Agence France-Presse (AFP) reported a statement from China’s commerce ministry that it would take “corresponding countermeasures” and file a claim against Washington at the World Trade Organization.

Mexican President Claudia Sheinbaum announced that her country would impose retaliatory tariffs.

Sheinbaum said she had told her economy minister “to implement Plan B that we have been working on, which includes tariff and non-tariff measures in defense of Mexico’s interests.”

Canadian Prime Minister Justin Trudeau - who spoke with Sheinbaum - separately said his country would hit back with 25% levies of its own on select American goods worth Can$155 billion (US$106.6 billion), with a first round on Tuesday followed by a second one in three weeks.

“We’re certainly not looking to escalate. But we will stand up for Canada, for Canadians, for Canadian jobs,” he said, as he warned of a fracture in longstanding Canada-US ties.