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The White House has announced a doubling of tariffs on China, raising the levy from 10% to 20%, according to a recent executive order. The move has triggered sharp criticism from China, which has vowed to take countermeasures to protect its economic interests.
China Condemns US Tariffs
In a statement, China’s commerce ministry accused the US of unfairly using the fentanyl crisis as a pretext for imposing tariffs. The ministry called on Washington to withdraw the “unreasonable and groundless” measures, denying accusations that China supplies chemicals used in fentanyl production.
However, former President Donald Trump defended the tariffs, calling them a “very powerful weapon” during a press briefing.
Canada and Mexico Vow Retaliation
The new US tariffs have sparked global backlash, with Canada and Mexico preparing countermeasures. Canadian Prime Minister Justin Trudeau condemned the tariffs as “unjustified” and announced a 25% retaliatory tariff on US goods.
“Our tariff will remain in place until the US trade action is withdrawn,” Trudeau declared, warning that the move violates the very trade agreement Trump negotiated in his previous term.
Economic Fallout
The escalating trade tensions have rattled financial markets, with Wall Street experiencing a sharp downturn:
- S&P 500 fell 1.7%
- Dow Jones Industrial Average dropped 1.5%
- Nasdaq declined by more than 2.6%
Industry Concerns Over Tariffs
The tariffs will impact $900 billion in annual imports from Canada and Mexico, raising concerns in the auto industry and other sectors. Ford CEO Jim Farley warned that the tariffs could “blow a hole” in the US economy.
While Trump has acknowledged that higher tariffs could lead to price increases, he has dismissed concerns, vowing to push ahead with tougher trade policies.
Gill Bikram Singh