>

US tariffs on Canada, Mexico, China spur trade war

Trump imposes 25% tariff on American neighbours, puts 10% levy on China; Trudeau, Sheinbaum hit back, Beijing threatens to move WTO
AGENCIES of US goods, while Mexican US government curb demand and
2 February President Claudia Sheinbaum use of narcotics internally. WE DON'T WANT TO BE HERE. WE
pledged retaliatory tariffs. China STRIFE WITH PARTNERS “Drug use and distribution is in
DIDN'T ASK FOR THIS. BUT WE WILL
P
resident Donald Trump vowed “corresponding counter- American exports and imports in 2024 until November ($ bn) your country and that is a public
unleashed the first salvo of measures” to Trump’s 10 per cent Exports Imports Trade balance
health problem that you have not NOT BACK DOWN... WE'RE
his tariff war, with general levy on Chinese exports, without addressed,” Mexican President CERTAINLY NOT
322
levies of 25 per cent on Canada and announcing any new tariffs. Canada -54 Sheinbaum said in a post on X. “It
377 LOOKING TO ESCALATE
Mexico and 10 per cent on China Trump’s orders also included is not by imposing tariffs that prob-
— the start of a wave of promised retaliation clauses that would 309 lems are resolved, but by talking.”
trade barrages against foreign increase US tariffs if the countries
Mexico
467
-157
In a speech Saturday night,
BUT WE WILL STAND
allies and adversaries alike. respond in kind. The new meas- China 131
-270
Trudeau invoked Canada’s long UP FOR CANADA”
Trump signed orders for the ures will be on top of existing trade 401 history of partnership with the US.
tariffs on Saturday, according to levies on those countries. “We have fought and died along- JUSTIN TRUDEAU
White House officials who briefed Trump’s tariffs deliver on a side you,” he said, citing World War Canadian Prime Minister
reporters on condition of anonym- threat to punish the three coun- Overall 1,916 3,008 -1,092 II, the Korean War and the recent
ity. The tariffs take effect at 12:01 tries for what he says is a failure to war in Afghanistan. “Together,
a.m. on Tuesday, and it’s unclear prevent the flow of undocumented we’ve built the most successful DRUG USE AND DISTRIBUTION IS IN
if that offers a last-chance window migrants and illegal drugs, though TOP 10 SOURCES OF US GOODS IMPORTS IN 2024 economic, military, and security
for a deal. They apply to a wide he had also teased the possibility Mexico, China, Canada accounted for 42% of total imports by US partnership the world has ever YOUR COUNTRY AND IT IS A PUBLIC
range of goods from three of the of a reprieve if Mexico and Canada seen,” Trudeau said, and he urged HEALTH PROBLEM YOU HAVE NOT
biggest US trading partners. took steps to address his concerns. Mexico 15.6 Trump to partner with Canada on
President Donald Trump said Energy imports from Canada, China 13.5 their shared challenges, including ADDRESSED... IT IS NOT
Sunday that Americans could feel including oil and electricity, will Canada 12.6 the fentanyl crisis. BY IMPOSING TARIFFS
“some pain” from the emerging be spared from the full 25 per cent Germany 4.9 China’s reaction was more
trade war triggered by his tariffs levy and will face a 10 per cent tar- Japan 4.6 muted, as was typical during THAT PROBLEMS ARE
against Canada, Mexico and iff. The White House officials said Vietnam Trump’s first term. The Commerce RESOLVED”
4.2
China, and claimed that Canada that was intended to minimise Trump said on Sunday that Americans Ministry issued a statement
would “cease to exist” without its upward pressure on gasoline and
Korea, South 4.0 expressing strong “dissatisfaction”
could feel “some pain” from the CLAUDIA
trade surplus with the United home-heating oil prices. emerging trade war, and claimed that Taiwan 3.6 Note: Figures show % share in total imports and vowing “corresponding coun- SHEINBAUM
States. “WILL THERE BE SOME Canada would “cease to exist” without Ireland 3.2 Compiled by BS Research Bureau termeasures”. It pledged to file a Mexican President
Source: www.census.gov/
PAIN? YES, MAYBE (AND Sweeping measures its trade surplus with the US India 2.7 complaint at the World Trade
MAYBE NOT!),” Trump said in a The orders Saturday curtailed so- Organization and called on the US
social media post. “BUT WE called de minimis exemption for to “manage differences on the CHINA HOPES THAT THE US WILL
WILL MAKE AMERICA GREAT small parcels and packages sent to reporters on a briefing call. industry advocates have warned Emergencies Act to address what basis of equality, mutual benefit
AGAIN, AND IT WILL ALL BE the US from the three countries, Under an energy emergency against even a 10 per cent increase he calls a “threat to the safety and and mutual respect.”
VIEW AND HANDLE ITS OWN
WORTH THE PRICE THAT effectively applying tariffs more Trump declared his first day in in the cost of crude inputs into security of Americans, including Trudeau and Sheinbaum FENTANYL AND OTHER ISSUES IN AN
MUST BE PAID.” widely to small shipments and office, affected products given that Midwestern refineries that have the public health crisis of deaths discussed the imposition of US tar-
Canada and Mexico potentially impacting e-com- lower 10 per cent tariff also include few near-term options to substi- due to the use of fentanyl.” iffs in a call, Trudeau's office said
OBJECTIVE AND RATIONAL
announced their own plans for merce and online retailing, though refined gasoline and diesel, ura- tute with US supplies. on Sunday. MANNER... BEIJING WANTS TO
retaliatory tariffs on the US. the scope of the measure wasn’t nium, coal, and critical minerals. Trump’s tariff orders Saturday Retaliatory steps The leaders agreed to work
Canadian Prime Minister immediately clear. Parts of the US, including the invoke the International Mexico was strident in rejecting together in areas of common inter-
ENGAGE IN FRANK DIALOGUE AND
Justin Trudeau said the country The US loses a tremendous Pacific Northwest and Northeast Emergency Economic Powers Act the Trump administration’s alle- est and to enhance the strong MANAGE DIFFERENCES”
will impose 25 per cent tariffs amount of tariff revenue by using US, are deeply reliant on electricity and expand an earlier declaration gation that it had alliances with bilateral relations between Canada
against C$155 billion ($106 billion) the exemption, a US official told or gas flows from Canada. And oil rooted in the National drug traffickers, and suggested the and Mexico. CHINA’S COMMERCE MINISTRY