US President Donald Trump has encouraged the territory of the new trade law with the Emergency Sanction Act to justify the punishment of tariffs on Canadian and Mexican imports and an additional duty on Chinese goods.
Trump signed Three separate executive order on Saturday, imposing tariffs that were globally criticized.
Here’s what you need to know about Trump’s tariffs and how the affected countries avenged themselves.
What is Trump’s tariff plan?
This imposes 10 percent of the law for all imports from China and 25 percent of the levies on goods from Mexico and Canada.
The exception of this is Canadian energy products, including oil, natural gas and electricity, which will be taxed to 10 percent.
Tariffs come without exceptions, according to White House officials and would even refer to Canadian imports of less than $ 800, which are currently without customs.
Why does Trump impose these tariffs?
Trump has called in the International Law on Economic Power For Emergency Cases (IEEPA) of imposing taxes, accusing the target countries of not doing enough to stop illegal immigration or drug trade in the United States.
The goal is to consider them “responsible for their promises to stop illegal immigration and stop poisonous Fentanil And other drugs thrown into our country, “the White House states.
The action does good in Trump’s repeated campaign threat to impose broad tariffs, a policy he defends and believes he helps to generate revenue, protect American jobs and create influence.
The word “tariff”, Trump often joked, “Is it The most beautiful word in the dictionary ”.
Trump has repeatedly said that he would like Canada to become “51.”, In January at the World Economic Forum in Davos, Switzerland, Trump called the northern neighbor of his country.
“We have a huge deficit with Canada. We won’t have it again. We can’t do it,” Trump said, teasing another way to avoid tariffs.
“As you probably know, I say,” You can always become a state. And then, if you are a state, we will not have a deficit. We won’t have to set you off, “Trump said.
When do the tariffs begin to take effect?
Tariff collections should start on Tuesday at 12:01 EST (05:01 GMT), according to Trump’s executive commands. However, imports that were loaded on the vessel or in their final transit before entering the US before 12:01 pm would be exempt from duty on Saturday.
Taxes will remain “until the crisis is mitigated”, towards the White House, which has not provided certain benchmarks needed to abolish.
How did Canada respond to Trump’s tariffs?
Canadian Prime Minister Justin Trudeau announced cheekily that Ottawa would respond to Natura, placing 25 percent of tariffs at up to $ 155 billion in American imports.
These tariffs would include American beer, wine and bourbon, as well as fruit and fruit juice, including orange juice from Trump’s home country Florida, Trudeau said. Canada would also target goods, including clothing, sports equipment and household devices.
Trudeau questioned why Trump would threaten a historic partnership in the US-Kanada, which he said was the strongest “world he had ever seen.”
According to the US government, Canada was the largest buyer of goods in the country in 2022, which made up $ 356.5 billion in purchase. Estimated $ 2.7 billion Valuable goods and services crossed the border of the United States every day in 2023.
“The actions taken by the White House today separated us instead of gathering us,” Trudeau said. “We didn’t ask for it, but we won’t retire.”
Mark CarneyThe leader who will replace Trudeauu as the next Canadian prime minister, also scored Trump’s tariffs and said that Canada would be “united” and “endure the abuser.”
President Trump thinks we’re pushing. He does not know the Canadians.
We will advocate for our country. We will stand united. We will stronger. Together. pic.twitter.com/xypitjuwkp
– Mark Carney (@Markjcarney) 2. February 2025
How did Mexico respond to Trump’s tariffs?
On Saturday, Mexican President Claudia Sheinbaum ordered Tariff’s retaliations in response to Tariffs to all the goods coming from Mexico.
In a long post on X, Sheinbaum said her government had sought dialogue, not dealing with a top trade partner in the north, but that Mexico was forced to respond to Natura.
“I instructed my economy minister to implement the plan B on which we work, which includes tariff and non-Tariff measures in defense of Mexico’s interests,” Sheinbaum announced, not stating which goods of US goods would target.
Now the most important foreign market of Mexico is by far, and Mexico overcame China as the best destination of American exports in 2023.
Mexico was preparing possible retaliation of tariffs to imports from the US, in the range of five to 20 percent, on pork, cheese, fresh products, produced steel and aluminum, according to sources that are familiar with this issue. Auto -industry would be exempt at first, they said.
Economy Minister Marcelo Ebord said on X that Trump’s tariffs “rude violation” of the US-Moxico-Kanade Agreement.
“Plan B is ongoing,” Ebard said. “We’ll win!”
US exports to Mexico amounted to more than $ 322 billion in 2023, showing the list list, while now the Mexican products worth more than $ 475 billion were imported.
In his post, Sheinbaum also rejected as a “defamation” to the White House that drug cartels have an alliance with the Mexican government, which Trump’s administration justified the tariffs.
What was the response of China to the tariff?
The Chinese government denied Tariffs and Trump’s request that Beijing needed to have a flow of fentanil, a deadly opioid in the United States, while the door left open to talk to the US that could avoid deepening conflict.
Beijing will cause Trump’s tariff at the World Trade Organization (WTO) – a symbolic gesture – and take indefinite “countermeasures” in response to a levy on Tuesday, the Chinese Ministry of Finance and Trade said.
This response stopped an immediate escalation that in the first term as president marked the Chinese screen with Trump and repeated the more measured language used by Beijing in recent weeks.
The Chinese toned response marked contrast to direct retaliation and heated language from Canada and Mexico.
The Chinese Ministry of Trade said in a statement that Trump’s move “seriously violates” international trade rules, urging the US to “involve the sincere dialogue and strengthen their cooperation”.
Subject of a lawsuit with WTO could get Beijing to win in messages by advocating for a trade system based on the rules that have long advocated American administrations of both sides. Beijing has taken the same step in the challenge of tariffs up to 45 percent on electric vehicles of Chinese drafting by the European Union.
At the same time, the WTO appeal does not represent direct costs or threat of Washington.
The Chinese sharpest return was through Fentanil, an area where former US President Joe Biden also called on Beijing to break the delivery of prekursor chemicals in China needed to produce the drug.
“Fentanil is an American problem,” said the Chinese Foreign Ministry. “The Chinese side conducted an extensive cooperation against narcotics with the United States and achieved extraordinary results.”
Did similar tariffs use the US in the past?
The closest parallel with Trump’s action was the use of the late President Richard Nixon IEEP’s Act, the 1917 enemy trading law, to impose 10 percent of US tariffs throughout the 1971 panel to stop growing imports in the midst of balance- crisis payments after withdrawal of dollars from the gold standard.
The courts supported Nixon’s action, but Jennifer Hillman, a professor of rights at Georgetown University and a former appearance of the World Trade Organization, said Trump’s action may not match emergency.
The Nixon language of the judgment and reporting in the statute of Ieep suggests that there should be a causal connection between emergencies – fental and migrants – and the drug: universal tariffs in Canada, Mexico and China.
“At least for me, I don’t think there is such a relationship in this case,” Hillman said. “The tariffs would not only apply to Fentanil, so there is no clear reason why the tariffs are” needed “to solve the problem of patch or migrants.”
Nixon’s use had a much clearer connection between imports and dollars, she added.
What do experts say?
Economic experts say tariffs are likely to slow economic growth for all parties, while likely to increase inflation.
“So far, the market has been really on Trump’s side, but that could change and the market could cause it for the first time,” said Mark Malek, Chief Director of Investing Sieberta Financial USA.
The new analysis of the Yale budgetary lab has given possible damage to the American economy, saying that the average household will lose $ 1,170 tax revenue.
Economist and former US Minister of Treasury Lawrence Summers said the jobs in the “industrial heart will be lost because US manufacturers cannot compete because of larger entry costs.”
On X he said that Canada and Mexico would lose confidence in the US and that the effect on the supply chain would be a “strategic gift” for China.
“The mistreatment does not win over time on the playground or in the international arena,” Summers said.
