Canada and Mexico hit back at Trump's tariffs - China vows 'corresponding countermeasures'

[Thiệu Ngô]

Trump signed an executive order to implement tariffs on Mexico, Canada, and China.
He has been threatening the tariffs on the three countries and others for months.
Canada and Mexico have vowed to impose retaliatory tariffs against the US.

By Ayelet Sheffey, Katherine Tangalakis-Lippert, Katie Balevic, Rebecca Rommen, and Kenneth Niemeyer

Canada and Mexico have hit straight back at President Donald Trump's latest tariffs, vowing to impose retaliatory levies on the US.

Canadian Prime Minister Justin Trudeau announced Saturday that Canada would impose 25% tariffs on C$155 billion (around $106 billion) of US goods, some of which will go into effect on Tuesday and others in three weeks' time.

Mexico's President, Claudia Sheinbaum, said in a post on X that she had also ordered retaliatory tariffs.

"I instruct the economy minister to implement Plan B that we have been working on, which includes tariff and non-tariff measures in defense of Mexico's interests," she wrote.

The Trump administration said Saturday it had imposed a 25% tariff on goods from Canada and Mexico and a 10% tariff on China. On Sunday, the president reacted to Canada's retaliation, saying it would "struggle to exist" without US subsidies.

"We pay hundreds of Billions of Dollars to SUBSIDIZE Canada. Why? There is no reason. We don't need anything they have," Trump wrote in a post on Truth Social.

China's Ministry of Commerce, meanwhile, accused the United States in a statement released Sunday of violating World Trade Organization rules with the tariff.

The ministry said China would file a lawsuit with the WTO against the United States and take "corresponding countermeasures to firmly safeguard its own rights and interests."

Economists expect many firms to pass increased costs caused by tariffs onto customers, and several companies have already said they are preparing to raise prices in response. Electronics, groceries, and apparel are among the most likely products to see price increases.

The White House said the tariffs will work to deliver Trump's campaign promises. Regarding his proposed first round of tariffs, an official told Business Insider that "Trump has been clear about his desire to end the fentanyl crisis, and it's time for Mexico and Canada to join the fight as well." Trump has said a tariff on China would also help fight the fentanyl problem.

Here are all the countries Trump has targeted with his trade proposals so far.

China

China was a key focus for tariffs on the campaign trail. While campaigning, Trump proposed a 60% tariff on all goods imported from China, alongside a 10% to 20% tariff on imports from other countries.

Once Trump took office, though, his ideas for tariffs on China appeared to narrow. On January 21, he suggested a 10% tariff on imports from China into the United States beginning on February 1 "based on the fact that they're sending fentanyl to Mexico and Canada."

The Trump administration cited the fentanyl crisis on Saturday as the impetus for the new tariffs.

China is a major electronics supplier to the United States, so cellphones, computers, and games could get more expensive.

Mao Ning, a spokesperson for China's Foreign Ministry, told reporters on January 22: "We believe that there's no winner in a trade or tariff war, and we will firmly uphold our national interests."

Canada and Mexico

The new tariffs make good on an earlier threat Trump posted in November on his social media platform, Truth Social. He indicated at the time that he would impose tariffs on those two countries on his first day in office if they didn't strengthen their border policies.

The US imports many key goods from both Mexico and Canada. Americans receive $92 billion in crude oil from Canada, as well as billions of dollars worth of vehicles and vehicle parts. In addition to car parts, Mexico also supplies $25 billion worth of computers to the United States.

BRICS nations

On November 30, Trump posted on Truth Social that he would impose a 100% tariff on the BRICS group unless they committed to not creating a separate currency that competes with the US dollar.

BRICS consists of nine countries: Brazil, Russia, India, China, South Africa, Ethiopia, Egypt, Iran, and the United Arab Emirates.

Pharmaceutical preparations, crude oil, and household goods are the top imports from countries in the BRICS group, excluding China. The Trump administration did not announce any tariffs on the BRICS nations on Saturday.
Denmark

Trump said during a press conference on January 7 that he would "tariff Denmark at a very high level" if the country didn't agree to cede control of Greenland, an autonomous Danish territory, to the United States.

The president has not offered further details on that claim, nor have any such tariffs been implemented. The Financial Times reported that Trump and Denmark's premier, Mette Frederiksen, had a call to discuss the threat, during which Frederiksen reportedly emphasized that Greenland was not for sale.

The US primarily imports medicinal products and machinery from Denmark.