World
India
President Donald Trump has confirmed that the United States will impose a 25% tariff on goods imported from Canada and Mexico, citing the failure to reach a trade agreement. These measures, which have been under discussion for months, are set to take effect immediately, intensifying tensions with the country’s key trade partners.
Trump’s announcement sent shockwaves through US stock markets, leading to significant declines. In addition to the North American tariffs, the US will also enforce a 10% levy on Chinese imports, further straining global trade relations. The president justified the move as necessary to curb illegal immigration and drug trafficking into the United States.
Canada swiftly responded, with Foreign Minister Mélanie Joly warning that retaliatory tariffs on US imports worth $155 billion were ready, with an initial $30 billion to be levied on goods such as pasta, clothing, and perfume. Joly emphasized that while Canada does not seek a trade war, it would not hesitate to defend its economic interests.
Mexico and China have also pledged countermeasures, heightening fears of a protracted economic conflict. Mexican President Claudia Sheinbaum stated that while Mexico values cooperation with the US, it would not accept economic subordination. Meanwhile, China’s state-run media signaled that Beijing is prepared to target US agricultural and food exports in response.
Trump, however, remained resolute, dismissing concerns about economic fallout. He reiterated that businesses seeking to avoid tariffs should relocate manufacturing to the United States. “If they build their car plants and other industries here, they won’t have to worry about tariffs,” he said.
The fallout was immediate, with the Dow Jones Industrial Average falling 1.4%, the S&P 500 dropping 1.75%, and the Nasdaq plummeting 2.6% following the announcement. Officials from Canada and Mexico had been in Washington in a last-minute attempt to prevent the tariffs, but their efforts proved unsuccessful.
Trump has also announced a 25% tariff on steel and aluminum imports, set to take effect on March 12, and has threatened additional reciprocal tariffs on individual countries and the European Union. With economic uncertainty rising, global markets are bracing for the impact of a potentially escalating trade war.
Also Read: Google Co-Founder Sergey Brin Urges Employees For 60 Hours Of Work Week
