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Trade tensions heat up as China and Canada retaliate against U.S. tariffs



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HONG KONG — Both China and Canada moved swiftly on Tuesday to retaliate against newly imposed U.S. tariffs, announcing their own levies on U.S. goods that could further disrupt U.S. trade with its top three trading partners.

A 25% U.S. blanket tariff on goods imported from Canada and Mexico took effect just after midnight Tuesday, along with an additional 10% tariff on goods from China. The three countries together accounted for more than 40% of total U.S. imports last year and are also its top three export markets.

China will impose additional tariffs of up to 15% on some U.S. goods, its government said, while Canada vowed tariffs of up to 25%. Mexican President Claudia Sheinbaum is expected to announce her response at a news conference in Mexico City on Tuesday morning, the country’s economy ministry said.

The new Chinese levies, which take effect on March 10, include a 15% tariff on chicken, wheat, corn and cotton, and a 10% tariff on sorghum, soybeans, pork, beef, fruits, vegetables, and dairy and aquatic products.

“The unilateral tariff increase by the U.S. harms the multilateral trade system, increases the burden on American businesses and consumers, and undermines the foundation of China-U.S. economic and trade cooperation,” China’s Customs Tariff Commission said in a statement.

The U.S. tariff adds to a previous 10% tariff that President Donald Trump imposed on Chinese goods starting Feb. 4. China also responded immediately to that tariff with its own targeted levies of 10% to 15% on U.S. products including coal, liquefied natural gas, crude oil, agricultural machinery and large-engine cars.

Canada had said earlier that it would impose 25% tariffs on 155 billion Canadian dollars ($107 billion) in American goods if the U.S. tariff took effect as scheduled.

Tariffs on $20.7 billion worth of goods will take effect immediately, while tariffs on the remaining $86.3 billion in U.S. products will begin in 21 days, Canadian Prime Minister Justin Trudeau said in a statement late Monday. They will remain until the U.S. trade action is withdrawn, he said.

“Because of the tariffs imposed by the U.S., Americans will pay more for groceries, gas, and cars, and potentially lose thousands of jobs,” Trudeau said. “Tariffs will disrupt an incredibly successful trading relationship. They will violate the very trade agreement that was negotiated by President Trump in his last term.”



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