Canada, China and Mexico strike back as Trump’s tariffs go into effect
Canada, China and Mexico are retaliating as President Trump’s tariffs go into effect Tuesday. The post Canada, China and Mexico strike back as Trump’s tariffs go into effect appeared first on FreightWaves.
President Donald Trump hit imports from Canada and Mexico with 25% tariffs overnight, alongside an additional 10% tariff on goods from China imposed Monday.
The import duties are aimed at forcing more cooperation from Canada, China and Mexico on stopping illegal immigration and drug smuggling into the U.S., Trump said.
Mexican President Claudia Sheinbaum announced Tuesday that her government plans to respond to the U.S. tariffs with its own tariff and nontariff measures starting Sunday.
Canadian Prime Minister Justin Trudeau retaliated with tariffs on $30 billion worth of American goods immediately and promised an additional $125 billion in products from the U.S. will face levies in three weeks, according to CBC.
Trump imposed a 10% tariff on Chinese goods in February, and doubled the rate of tariffs on imports from China to 20% on Tuesday. China has responded with up to 15% duties on U.S. agrifood goods such as beef, chicken and pork, to start next Monday.
Sheinbaum said she would continue to seek a negotiated solution to the immigration and drug smuggling issues at the border with the Trump administration.
“Nobody wins with this decision,” Sheinbaum said at her daily morning news conference on Tuesday. “There is no reason that justifies these actions. … I call on the people of Mexico to face this challenge together, to remain united.”
Related: Trump raises tariffs on Chinese goods another 10%
Mexico was the top U.S. trade partner for the second consecutive year in 2024, totaling a record-breaking $840 billion.
Canada ranked No. 2 for trade with the U.S. in 2024 at $761 billion, and China ranked third at $582 billion.
Border authorities in the U.S. were scheduled to begin collecting a 25% tariff on nearly all goods from Mexico and Canada starting at 12:01 a.m. Tuesday, according to a public notice of the rules posted Monday.
Trump’s tariffs could spark a global trade war, hurting businesses and consumers, according to Melanie Nuce-Hilton, an innovation strategist at GS1 US.
“Wallets of both businesses and consumers alike are going to feel the pain. Expect price shifts and product availability changes in the short term,” Nuce-Hilton said in an email to FreightWaves. “Small businesses that rely on imported materials — especially in home goods, apparel, and electronics — may have to raise prices or adjust inventory.”
Ewing, New Jersey-based GS1 US is a nonprofit organization that facilitates industry collaboration to improve supply chain visibility and efficiency through GS1 standards.
“Nearshoring, change of manufacturing — those are pretty painful things to do in a supply chain,” Nuce-Hilton said. “We are $1 trillion underfunded for the infrastructure we need to truly bring manufacturing back to the U.S.”
Ronald Kleijwegt, CEO at Vinturas, said the tariffs could mark a shift in international manufacturing and supply chains.
“We’re already seeing a shift toward nearshoring and friendshoring, where supply chains prioritize trade partners least impacted by protectionist measures. With U.S. tariffs on Chinese goods increasing, supply chains will likely pivot to alternative manufacturing hubs, such as Vietnam, India or Mexico,” Kleijwegt said in an email to FreightWaves.
The post Canada, China and Mexico strike back as Trump’s tariffs go into effect appeared first on FreightWaves.
