China, Canada and Mexico Cudgeled by US Tariffs

US President Donald Trump followed through on his promises. He cudgeled China, Canada and Mexico with tariffs, and which took effect yesterday. [As for the rest of the world, it's a matter of time before the tariffs too come a-calling].

And China promptly retaliated. China said on Tuesday it would impose fresh tariffs on a range of agricultural imports from the US on March 10. Its finance ministry said additional 15% tariffs would be enforced on chicken, wheat, corn and cotton, with a further 10% levies on sorghum, soya beans, pork, beef, aquatic products, fruits, vegetables and dairy products. It has also raised additional complaints against the US with the World Trade Organization.

Separately, China’s Ministry of Commerce said they added 15 American companies, including drone maker Skydio, to their export control list, which would bar Chinese companies from exporting dual-use equipment to them. 

Meanwhile, Canadian prime minister, Justin Trudeau, who called the tariffs a "very dumb thing to do", said Ottawa would respond with immediate 25% levies on C$30 billion worth of US imports. He said previously that Canada would target US beer, wine, bourbon, home appliances and Florida orange juice. Tariffs will be placed on another C$125 billion of US goods if Trump’s levies are still in place in 21 days. 

Mexico’s President Claudia Sheinbaum said on Tuesday that she would announce retaliatory tariffs on American imports into Mexico, as well as non-tariff measures, only on Sunday, as she hoped to have a call with Trump this Thursday.

Obviously, Trump needs to be schooled on economics. He has been claiming that higher tariffs on US imports from across the world will help “make America great again” by enabling it to obtain political and economic concessions from allies and rivals on the global stage.

Instead, his tariffs threaten to raise the prices Americans pay for a wide array of goods that are imported from the three nations, which collectively shipped $1.4 trillion worth of goods to the US last year, according to Commerce Department data. That accounts for more than 40% of the value of all goods the US imported last year.