(WASHINGTON D.C.) — On Tuesday, President Donald Trump’s 25% tariffs on Mexico and Canada along with an additional 10% tariff on China have taken effect. The additional 10% tariff on China is added to the 10% enacted last month, bringing the total to 20%.
One exception is energy-related items from Canada like crude oil, that will only face a 10% tariff according to the Trump Administration.
Canada and China have immediately responded with tariffs of their own on U.S. products. Prime Minister Justin Trudeau has enacted 25% tariffs on the U.S. and has said that by March 25th, Canada could impose an additional $125 billion in tariffs on American goods. Ontario’s premier Doug Ford told NBC News the tariffs will be an “absolute disaster” for both countries and Canada will respond like the U.S. has never seen before. Ford says he’ll stop his province’s shipments of nickel, which would negatively impact American manufacturing. He also threatened to shut down the electricity that goes to the U.S.
Meantime, China has retaliated directly on food and ag products from the U.S. by announcing 15% tariffs on corn, wheat, cotton and chicken imports. Bejing has also enacted a 10% tariff on soybeans, sorghum, pork, beef, dairy, fruits, vegetables and aquatic products from the U.S. in a retaliatory measure.
Many economists predict American importers will pass along the cost of tariffs to consumers, sending prices higher at the grocery store and more.
Separately, President Trump on Monday announced that he would impose tariffs on what he calls “external” agricultural products beginning on April 2nd. In a Truth Social Post, the President said that “To the Great Farmers of the United States: Get ready to start making a lot of agricultural product to be sold INSIDE of the United States. Tariffs will go on external product on April 2nd. Have fun!”
No other details were given and it is not clear if this is part of the administration reciprocal tariff strategy or something else.
