President Donald Trump's long-awaited tariffs on imports from Canada and Mexico finally went into effect on Tuesday, raising tensions in global markets and prompting costly retaliation from American allies.
As of midnight local time, imports from Canada and Mexico will now be taxed at 25%, while Canadian energy will be taxed at 10%. The tariff on Chinese imports imposed by Mr Trump in February will also increase from 10% to 20%.
In response, Canadian Prime Minister Justin Trudeau announced his country would impose tariffs on more than $100 billion (£78.7 billion) worth of American goods within 21 days.
China said it would impose additional tariffs of up to 15% on imports of key U.S. agricultural products, including chicken, pork, soybeans and beef.
The duties announced by the Commerce Department are set to take effect on March 10, although goods already in transit will be exempt until April 12.
Later on Tuesday, Mexican President Claudia Sheinbaum said Mexico would respond to the 25 percent tariffs imposed by the United States with its own retaliatory measures on American goods.
Ms. Sheinbaum said she would announce the goods Mexico would sanction on Sunday at a public event in Mexico City's central square, a sign that Mexico still hopes to de-escalate Mr. Trump's trade war.
“There is no basis, reason or justification for such a decision, which will negatively impact our people and our countries,” she said.
The US president's actions have fuelled fears of rising inflation and the prospect of a devastating trade war, even as he has promised Americans that import taxes are the easiest path to national prosperity.
He has shown a willingness to ignore warnings from leading economists and risk his public approval in the belief that tariffs can fix the country's current problems.
“This is a very powerful tool that politicians have not used because they have either been dishonest or stupid or they have been paid in some way,” Mr. Trump said at the White House on Monday.
“And now we are using them.”
US markets fell sharply on Monday after Mr Trump said there was “no room left” for talks that could reduce tariffs. Shares in Europe and Asia were mostly lower on Tuesday after the tariffs were imposed.
Tariffs for Canada were originally expected to be
Sourse: breakingnews.ie
