Donald Trump’s tariffs: Canada retaliates, will Mexico, China follow suit? Impact on US as global trade tensions loom

US President Donald Trump’s 25% tariffs on Mexico and Canada will come into effect on Tuesday, March 4, with the latter announcing retaliatory steps, escalating trade tensions globally. The US will also double the tax on goods from China to 20% amid renewed concerns a trade war may push up inflation and hinder growth.

Donald Trump on Monday confirmed tariffs on neighbouring nations and said, “No room left for Mexico or for Canada. No, the tariffs, you know, they’re all set. They go into effect tomorrow.”

As Donald Trump’s tariff hike for Mexico, Canada, and China kicks in today, a peek into its repercussions and impact on America and global trade.

Canada retaliates to Trump tariff hike

In response to Trump administration tariff hike, Canada will impose 25% tariffs on US imports worth 30 billion Canadian dollars from Tuesday. It will impose tariffs on additional US imports worth 125 billion Canadian dollars in coming 21 days.

What are tariffs?

Tariffs are taxes imposed by a country on goods imported from other nations. They are a major form of regulation in foreign trade and policy. Countries often raise tariffs to protect their domestic industry.

Donald Trump tariffs on Canada, Mexico, and China: How it will impact Americans?

Donald Trump’s tariff hike plan for Mexico and Canada is likely to push up inflation. Implementation of Trump’s tariff hike plan would raise prices on around 25% of all consumer spending to increase by 0.81% if businesses pass along half the costs, or 1.63% if the costs are fully transferred, reported Forbes citing a Federal Reserve Bank of Atlanta study.

Expensive consumer goods

Trump tariff hike would impact a wide variety of consumer goods including cell phones, clothings computers, other electronic devices, reported ABC news.

Costlier automobiles

Donald Trump earlier also announced a 25% tariff on steel and aluminium. The United States imports a major chunk of the two metals from Canada, Brazil, and Mexico. A hike in tariffs on metals would make their supply expensive for American companies, especially those linked to auto manufacturing.

America’s car industry will bear the brunt of Donald Trump’s tariff hike. According to a BBC report, the average US car price could shoot by $3,000 for customers because of the import taxes.

Expensive electronics in America

As per the US Department of Commerce, the US imports over 70% of delivery trucks from Mexico, and 35% of imported computers come from Mexico. America’s 45% of imported items in the telephone industry and 56% of imported electric batteries come from China. Hence, a tax hike on Mexico, China, and Canada may raise the cost of these products.

Higher grocery prices

In 2024 US bought an estimated $49 billion in agricultural products from Mexico, which also included 47% of imported vegetables and 40% of imported fruits to America, reported ABC news. Canada exported an estimated $41 billion of agricultural products to the US.

Due to low profit margins and highly perishable nature of the commodities in agriculure sector, it would be difficult for the stakeholders to sustain the tariff hike shock without passing on to the customers.

Will Canada, Mexico, China retaliate?

Soon after Donald Trump announced to implementation of tariff hike, Canada, China and Mexico have warned of retaliation.

Canada’s foreign minister Melanie Joly said that her country has prepared a sweeping package of counter-tariffs against US-made products.

Mexico President Claudia Sheinbaum on Monday said that her administration has prepared a plan in response to Donald Trump tariff hike.

China’s commerce ministry reacted strongly to Donald Trump administration’s announcement. “China is strongly dissatisfied with this and firmly opposes it, and will take countermeasures to resolutely safeguard its own rights and interests,” read a statement by ministry in February,

US President Donald Trump’s 25% tariffs on Mexico and Canada will come into effect on Tuesday, March 4, with the latter announcing retaliatory steps, escalating trade tensions globally. The US will also double the tax on goods from China to 20% amid renewed concerns a trade war may push up inflation and hinder growth.

Donald Trump on Monday confirmed tariffs on neighbouring nations and said, “No room left for Mexico or for Canada. No, the tariffs, you know, they’re all set. They go into effect tomorrow.”

As Donald Trump’s tariff hike for Mexico, Canada, and China kicks in today, a peek into its repercussions and impact on America and global trade.

Canada retaliates to Trump tariff hike

In response to Trump administration tariff hike, Canada will impose 25% tariffs on US imports worth 30 billion Canadian dollars from Tuesday. It will impose tariffs on additional US imports worth 125 billion Canadian dollars in coming 21 days.

What are tariffs?

Tariffs are taxes imposed by a country on goods imported from other nations. They are a major form of regulation in foreign trade and policy. Countries often raise tariffs to protect their domestic industry.

Donald Trump tariffs on Canada, Mexico, and China: How it will impact Americans?

Donald Trump’s tariff hike plan for Mexico and Canada is likely to push up inflation. Implementation of Trump’s tariff hike plan would raise prices on around 25% of all consumer spending to increase by 0.81% if businesses pass along half the costs, or 1.63% if the costs are fully transferred, reported Forbes citing a Federal Reserve Bank of Atlanta study.

Expensive consumer goods

Trump tariff hike would impact a wide variety of consumer goods including cell phones, clothings computers, other electronic devices, reported ABC news.

Costlier automobiles

Donald Trump earlier also announced a 25% tariff on steel and aluminium. The United States imports a major chunk of the two metals from Canada, Brazil, and Mexico. A hike in tariffs on metals would make their supply expensive for American companies, especially those linked to auto manufacturing.

America’s car industry will bear the brunt of Donald Trump’s tariff hike. According to a BBC report, the average US car price could shoot by $3,000 for customers because of the import taxes.

Expensive electronics in America

As per the US Department of Commerce, the US imports over 70% of delivery trucks from Mexico, and 35% of imported computers come from Mexico. America’s 45% of imported items in the telephone industry and 56% of imported electric batteries come from China. Hence, a tax hike on Mexico, China, and Canada may raise the cost of these products.

Higher grocery prices

In 2024 US bought an estimated $49 billion in agricultural products from Mexico, which also included 47% of imported vegetables and 40% of imported fruits to America, reported ABC news. Canada exported an estimated $41 billion of agricultural products to the US.

Due to low profit margins and highly perishable nature of the commodities in agriculure sector, it would be difficult for the stakeholders to sustain the tariff hike shock without passing on to the customers.

Will Canada, Mexico, China retaliate?

Soon after Donald Trump announced to implementation of tariff hike, Canada, China and Mexico have warned of retaliation.

Canada’s foreign minister Melanie Joly said that her country has prepared a sweeping package of counter-tariffs against US-made products.

Mexico President Claudia Sheinbaum on Monday said that her administration has prepared a plan in response to Donald Trump tariff hike.

China’s commerce ministry reacted strongly to Donald Trump administration’s announcement. “China is strongly dissatisfied with this and firmly opposes it, and will take countermeasures to resolutely safeguard its own rights and interests,” read a statement by ministry in February,