In response to the United States' recent tariff hike, China
has announced new duties ranging from 10% to 15% on various US agricultural and
food products, set to take effect on March 10. Alongside these tariffs, China
has also imposed export and investment restrictions on 25 US firms, escalating
tensions between the two economic giants.
Details of the Retaliatory Tariffs
According to a report by Reuters, China will implement a 10%
tariff on key US imports, including:
- Soybeans
- Sorghum
- Pork
- Beef
- Aquatic
products
- Fruits
and vegetables
- Dairy
products
Additionally, a 15% tariff will be levied on:
- Chicken
- Wheat
- Corn
- Cotton
Escalating Trade War
This move follows the US government's decision to double
tariffs on Chinese goods, increasing duties from 10% to 20%. The US also
imposed a new 25% tariff on imports from Canada and Mexico, two of its largest
trading partners.
US President Donald Trump justified the tariff hike on
Chinese imports, citing concerns over China’s alleged role in fentanyl
production. The increased tariffs took effect on Tuesday.
Canada and Mexico’s Response
China is not the only country retaliating against the US
tariff hike.
Canada’s Countermeasures
Canada has announced retaliatory tariffs worth $107 billion
(155 billion Canadian dollars) on US goods. Outgoing Prime Minister Justin
Trudeau stated that:
- A 25%
tariff on US goods worth 30 billion Canadian dollars will take
effect immediately.
- Tariffs
on the remaining 125 billion Canadian dollars worth of goods will
be implemented within 21 days.
Mexico’s Backup Plan
Mexico has also signaled its readiness to counter the US
tariffs. President Claudia Sheinbaum stated that the country has "Plan B,
C, and D" prepared if the US follows through with its trade restrictions.
Global Economic Uncertainty
With multiple countries imposing retaliatory tariffs, the
global trade landscape is set for increased volatility. As China, Canada, and
Mexico push back against US trade policies, economic analysts warn of potential
disruptions in international markets.
The situation continues to evolve, with further responses
from the involved nations expected in the coming weeks.