According to BBC News report, Donald Trump threatened to impose major tariffs upon taking office. And Canada, Mexico and China have vowed to respond to sweeping new tariffs to their exports to the US announced by President Donald Trump. Trump has kept his words. True to type, he has done it. We should get ready for the pains or act to mitigate them.
Trump said a levy of 25% on Canadian and Mexican imports as well as an additional 10% tax on Chinese goods would come into force on Tuesday. Canadian energy faces a lower 10% tariff.
The US president said the move was in response to his concerns about illegal immigration and drug trafficking – two of the main promises on which he was elected.
In response, both Canada and Mexico said they were preparing similar tariffs on US goods, while China added it would take “necessary countermeasures to defend its legitimate rights and interests”.
The implementation of tariffs and the subsequent retaliation could mark the start of a new era of global trade wars, said the BBC report.
Economists have warned the introduction of the import taxes by the US, and the responses from other countries, could lead to prices rising on a wide range of products, from cars, lumber, and steel to food and alcohol.
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