US Tariffs Take Effect as Mexico, Canada, and China Retaliate.

This combination of file photos shows, from left, U.S. President Donald Trump in Palm Beach, Fla., Feb. 7, 2025, Canadian Prime Minister Justin Trudeau in Kyiv, Ukraine, June 10, 2023, China’s President Xi Jinping in Brasilia, Brazil, Nov. 20, 2024, and Mexico’s President in Mexico City. Courtesy image.

President Donald Trump escalated trade tensions on Tuesday by imposing tariffs on America’s three largest trading partners—Mexico, Canada, and China. The move triggered immediate retaliation from all three countries, sending financial markets into turmoil and raising concerns about inflation and business uncertainty.

At midnight, the U.S. government enforced a 25% tariff on imports from Mexico and Canada. However, Canadian energy imports were subjected to a lower 10% levy. Additionally, Trump doubled the tariffs on Chinese products from last month, raising them to 20%. These measures were part of his administration’s aggressive trade policies aimed at reducing trade deficits and protecting domestic industries.

China responded swiftly by imposing tariffs of up to 15% on a wide range of American agricultural exports, a sector already feeling the strain from previous trade disputes. Beijing also expanded restrictions on U.S. companies, adding about two dozen firms to its list of those subject to export controls and regulatory barriers.

Meanwhile, Canada and Mexico announced their own countermeasures, targeting key American exports in an effort to pressure Washington into reversing course. These retaliatory tariffs are expected to impact American farmers, manufacturers, and various industries reliant on cross-border trade.

The trade war escalation has injected fresh uncertainty into global markets, with investors fearing a slowdown in economic growth. Analysts warn that rising tariffs could lead to higher consumer prices, supply chain disruptions, and potential job losses in industries dependent on international trade.

As the standoff intensifies, businesses and consumers alike are bracing for the long-term consequences of these trade policies, while negotiations between the U.S. and its trading partners remain uncertain.

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