US President Donald TrumpAs soon as he took oath of office for his second term, US President Donald Trump announced a raft measures on many things.
Some of these measures included Tariffs on select countries, with some of the notable ones including the European Union, Canada, Mexico and China.
The tariffs have been taking effect on a rolling basis even though some of them only took effect on Tuesday.
Some of the affected countries like Canada and China have also retaliated with the same amount of tariffs as placed by the United States.
Trump says these tariffs, especially for neighbouring Mexico and Canada, as well China is to protect the US from national security threats.
“President Donald J. Trump is proceeding with implementing tariffs on Canada and Mexico under the International Emergency Economic Powers Act (IEEPA) to combat the extraordinary threat to U.S. national security, including our public health posed by unchecked drug trafficking,” the White House said.
Trump accuses Canada and Mexico of allowing dangerous cartel activity and influx of lethal drugs flowing into the US.
“The flow of contraband drugs like fentanyl into the United States, through illicit distribution networks, has created a national emergency, including a public health crisis.
“Mexican drug trafficking organizations, the world’s leading fentanyl traffickers, operate unhindered due to an intolerable relationship with the government of Mexico,” Trump said.
He insists that there is also a growing presence of Mexican drug cartels in western parts of Canada.
Trump hits Canada and Mexico with 25 per cent Tariffs.
In retaliation, Canada imposed 25% tariffs on US Goods.
Canada Prime Minister Justin Trudeau on Monday said that there is no justification for Trump’s tariffs.
Mexico is still in talks with the United States.
China has also protested the move by the US to impose the 10 per cent tariffs, which he raised to 20% on Tuesday.
China has requested the World Trade Organization for dispute consultations with the United States in regard to new tariff measures applied by the United States on goods originating in China.
It argues that the 10 per cent additional ad valorem duties applied on all goods originating in China, as well as measures with respect to the availability of drawbacks and duty-free de minimis treatment, which apply to all products of Chinese origin, are inconsistent with US most-favoured-nation obligations under Article I:1 of the General Agreement on Tariffs and Trade (GATT) 1994 and US tariff obligations under Article II:1(a) of GATT 1994.
Beijing retaliated on Tuesday by announcing 15% tariffs on chicken, wheat, corn, and cotton imports from the US, according to a statement from the State Council Tariff Commission.
China also imposed a 10% tariff on sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables, and dairy products.
China insists that it will fight to the end.
Lin Jian, a spokesperson for China’s Foreign Ministry, on Tuesday said, “China will fight till the end. If the US insists on waging a tariff war, trade war or any other kind of war.”
“I want to reiterate that the Chinese people have never feared evil or ghosts, nor have we ever bowed to hegemony or bullying.”
China added that pressure, coercion and threats are not the right ways to engage with China.
“Trying to exert maximum pressure on China is a miscalculation and a mistake.”
