Donald Trump, Photo: REX / Shutterstock
On 1 February, US President Donald Trump signed a decree imposing duties on imports from Canada, China and Mexico. According to AP, the duties for Canada and Mexico will be 25%, and for Chinese goods – 10%.
Reasons for the introduction of tariffs
Trump explained his decision by fighting illegal migration and drug smuggling, in particular the synthetic opioid fentanyl.
According to the Associated Press, the duty on energy from Canada will be 10% to avoid a significant increase in petrol and utility prices in the US.
Canada and Mexico are preparing a retaliatory strike
According to Bloomberg, Canada has prepared a list of $105 billion worth of US goods that will also be subject to retaliatory duties.
Mexico’s Economy Minister Marcelo Ebrard warned that these duties would hit the US automakers General Motors and Ford Motor, which produce 88% of pickup trucks sold in the US in Mexico.
China: “There will be no winner in the trade war”
The Chinese Embassy in the United States has stated that the trade war between Washington and Beijing will not bring victory to either side.
“The United States should sincerely respect the principles of market economy and international trade,” said Liu Pengyu, a spokesman for the Chinese Embassy.
The new duties could exacerbate trade relations between countries and cause economic turmoil at the international level.
