Canada, China imposed on retaliation tax

From 0h on 4/3, all Mexican and Canada goods entered the US to bear the new import tax. Accordingly, energy from Canada will be imposed on 10%tax. This item of Mexico is subject to 25%tax. Other products from the two countries imported into the US were applied 25%.

Besides, all Chinese goods will bear an additional 10%, bringing the total additional tax to 20%. US President Donald Trump signed this decree on March 3.

Immediately after Mr. Trump’s tax policy took effect, Canada declared a 25% tax response to US $ 30 billion in Canadian goods. A total of 1,256 products affected in this phase, including orange juice, peanut butter, wine, beer, coffee, household appliances, clothes, shoes, motorbikes, cosmetics, wood pulp and paper.

21 days later, the tax of 25% with 125 billion CAD US goods is also effective. This plan was announced by Prime Minister Justin Trudeau on March 3. “Our tax is valid until the US withdraws these trade moves. If not, we will discuss positively to localities to apply non -tariff measures,” Trudeau said.

Ontario’s donor, Doug Ford on March 3 also warned that cutting the export power to the US to respond to import tax. Ontario Province is the supplier of most power supply to New York, Michigan and Minnesota.

China also immediately announced retaliation. The Ministry of Finance said it would impose additional import taxes 10-15% to some US goods, from March 10. Soy, high salary, beef, pork, seafood, fruit, vegetables and dairy products will be subject to 10%tax. The tax rate for chicken, wheat, corn and cotton is 15%.

The Chinese Ministry of Commerce also added 15 US businesses on the list of export restrictions. The agency also declared strongly opposing the unilateral tax raising move of Washington.

A month ago, Beijing also announced retaliation after the first additional tax (10%) of the US took effect. Accordingly, the US coal and liquefied natural gas (LNG) are subject to 15%tax. Taxes for crude oil, farm machinery and some cars are 10%. Many important metals are squeezed for export. Google was investigated against exclusive, and two other US companies were put into the blacklist by China.

Mexican President Claudia Sheinbaum was forecasted to announce the reaction at a press conference this morning in Mexico City, the Ministry of Economy of the country.

Last week, Mr. Trump warned new tax rates to take effect after a month of delay to discuss with Canada and Mexico leaders. The US President said that the amount of drugs flowing into this water “is still high and difficult to accept”, and affirmed that the parties “have nothing to negotiate”.

Mexico, Canada and China are the top three US trading partners. Particularly for Canada, trade turnover with Washington reached more than 2 billion USD every day in 2023. The US is currently the largest trading partner of Canada, contributing 76% of export turnover and 64% of the country’s import.

Mexico, meanwhile, was the largest trading partner of the United States in 2023, with a turnover of $ 807 billion. This country came to the US products such as crude oil, aluminum and steel. In contrast, they are large markets for car parts, semiconductor chips and many types of American agricultural products.

For China, according to the country’s customs data, bilateral trade with the US reached 4,898 billion yuan ($ 668 billion) in 2024. However, the trade deficit of the two countries was very large, making Washington unhappy for many years. Last year, the deficit was up to 361 billion USD.