Trump tariffs: How are angry China, Canada, Mexico responding? What will cost you more?

Trump

President Donald Trump has started trade with China, Canada and Mexico. (AP Photo | Jacquelyn Martin)AP

As President Donald Trump promised on the campaign trail and during his first month in the White House, the United States slapped Canada, Mexico and China with hefty tariffs on Tuesday, and all three trading partners fired back — reducing products they ship to the U.S. while slapping taxes on American-made imports, or both.

It’s the beginning of a trade war being waged on several fronts that could be economically painful for American consumers who already are dealing with inflationary hardships.

The tariffs come less than 24 hours before Trump will address both houses of Congress on Tuesday night. This is not a State of the Union Address, but it provides an opportunity for the president to lay out his priorities.

According to the New York Times, here’s how the targeted countries responded to the administration’s latest tariffs: 10 percent on imports from China, and 25 percent on most imports from Canada and Mexico

China: The finance ministry announced 15 percent tariffs on imports of chicken, wheat, corn and cotton from the U.S., as well as 10 percent tariffs on imports of sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables and dairy products. China also ordered its custom agencies to reduce or eliminate U.S imports of logs and soybeans.

China’s foreign ministry hinted on Tuesday that the country might curtail cooperation with the United States in fighting fentanyl as part of retaliating against tariffs. “This will deal a heavy blow to counternarcotics cooperation,” said Lin Jian, a spokesman, at the ministry’s daily briefing, via the Times.

Canada: America’s neighbor to the north imposed 25 percent tariffs on $30 billion worth of goods at 12:01 a.m. Eastern but did not specify which products would be affected. Prime Minister Justin Trudeau of Canada said in a statement that the tariffs would extend to $125 billion of American goods in 21 days.

The Trump administration hopes the tariffs encourage manufacturers to set up factories in the United States. But they will drive up consumer prices and manufacturing costs in the United States, could cost American jobs and undoubtedly will strain diplomatic ties — and already have.

Mexico: The Mexican government and businesses have rekindled a “Made in Mexico” campaign. Some Mexicans have called for boycotts of U.S. companies and products, while others have put together lists of Mexican stores and brands to support instead of American ones.

President Claudia Sheinbaum was expected to address the tariffs at a news conference early on Tuesday. With nationalism strengthening as a result of the dispute, the Mexican leader has seen her approval ratings rise.

Trump’s moves raised fears of higher inflation and the prospect of a trade war even as he promised the American public that taxes on imports are the easiest path to national prosperity. He has shown a willingness to buck the warnings of mainstream economists and put his own public approval on the line, believing that tariffs can fix what ails the country.

“It’s a very powerful weapon that politicians haven’t used because they were either dishonest, stupid or paid off in some other form,” Trump said Monday at the White House. ”And now we’re using them.”

U.S. markets dropped sharply Monday after Trump said there was “no room left” for negotiations that could lower the tariffs. Shares in Europe and Asia were mostly lower Tuesday after they took effect.

The Canada and Mexico tariffs were supposed to begin in February, but Trump agreed to a 30-day suspension to negotiate further with the two largest U.S. trading partners. The stated reason for the tariffs is to address drug trafficking and illegal immigration, and both countries say they’ve made progress on those issues. But Trump has also said the tariffs will only come down if the U.S. trade imbalance closes, a process unlikely to be settled on a political timeline.

The tariffs may be short-lived if the U.S. economy suffers. But Trump could also impose more tariffs on the European Union, India, computer chips, autos and pharmaceutical drugs. The American president has injected a disorienting volatility into the world economy, leaving it off balance as people wonder what he’ll do next.

“It’s chaotic, especially compared to the way we saw tariffs rolled out in the first (Trump) administration,” said Michael House, co-chair of the international trade practice at the Perkins Coie law firm. ”It’s unpredictable. We don’t know, in fact, what the president will do."

The Associated Press contributed to this report.

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