China has announced retaliatory tariffs of up to 15% on U.S. exports, responding to the Trump administration’s fresh tariff measures on Mexico and Canada, according to Bloomberg. This move intensifies the ongoing trade war between the world’s two largest economies.
Trump imposes 25% tariffs on Mexico and Canada
On Monday, U.S. President Donald Trump confirmed that 25% tariffs on imports from Mexico and Canada would take effect Tuesday, despite hopes for a last-minute deal to prevent escalating tensions.
“They’re all set. They go into effect tomorrow,” Trump stated during a White House event, adding that there was “no room left” for further negotiations with Canada and Mexico.
The stock market reacted negatively, with the S&P 500 falling 1.76%, marking its worst session since December and pushing the index into the red for the year.
Trump justifies tariffs, cites fentanyl crisis
Trump defended the tariff move, arguing that Canada and Mexico had failed to curb the illegal fentanyl trade—a synthetic opioid fueling the U.S. drug crisis.
“Vast amounts of fentanyl have poured into our country from Mexico, and as you know, also from China, where it goes to Mexico and Canada,” Trump said.
Alongside the North American tariffs, Trump doubled tariffs on Chinese imports—raising the rate to 10%, up from the initial 5% imposed in early February.
China strikes back with fresh tariffs
In response, China has imposed new tariffs ranging between 5% and 15% on U.S. exports, further escalating the trade standoff. The Bloomberg report indicates that Beijing sees this as a necessary countermeasure to Trump’s aggressive economic policies.
Critics warn of consumer impact
While Trump views tariffs as a strategic economic tool, critics argue that higher import duties will increase prices for U.S. consumers, as businesses will be forced to absorb higher costs on foreign goods.
Meanwhile, Canadian Prime Minister Justin Trudeau has warned that Canada will impose retaliatory tariffs if Trump proceeds with his tariff plan, potentially leading to further instability in North American trade relations.
