Global Trade Tensions Escalate as Canada, Mexico, and China Retaliate Against U.S. Tariffs
- International Affairs North America South China Sea
Shreya Naskar- 0
- 3 minutes read
As known earlier, the US has imposed a tariff on Canada, Mexico and China with Canada and Mexico being two biggest trading partners of the US along with sharing borders with them. One of the many reasons stated by Donald Trump as to counter the illegal immigrants from Canada and Mexico. US has imposed 25% tariff on Mexican and Canadian goods.
To understand everything related to tariff war we need to understand what tariff is, Tariff is a levied tax imposed on various goods imported from various countries, and can be used to generate revenue and income growth.
As a counter act, Canada and China has imposed tariff on the Us. Canada has imposed tariff on more than 1200 items including US guns and many more. Canada had divided the tariffs into different waves, the first wave is to be imposed on 4th February,2025 i.e. today and the rest will be continued in a span of 21 days.
China has imposed counter tariff of 10% on US goods such as LNG products and 15% tariff on US coal products.
Mexico has chosen to be quite for a period of time. Eventually, Mexico has also planned significant tariff on US goods and is also ready with a list of all the items that are to be included in the items of tariff. For now, Mexico has talked to act with a cool head.
This tariff has imposed significant threat to the whole world, some of the countries among them where the market has shown significant downfall are:
- Germany: DAX: 1.93%
- French: CAC: 1.70%
- Japan: NIKKEI: 2.66%
- India: SENSEX: 0.41%
- S: S&P500: 1.60%
While, Mexico has chosen to be quite at present, Canada and China has significantly planned to approach the World Trade Organisation (WTO) for USA’s actions against them. Trump has also declared to impose tariff on the European Union (EU). This tariff war seems to be something to be continued for much time and the significance is to be noticed with time.
