China Media: US tariffs against Mexico and Canada come into force
The tariffs announced by US President Donald Trump for goods from Mexico and Canada came into force shortly after midnight (local time), according to US media. This was reported by the "New York Times", "Wall Street Journal" and CNN, among others. Trump had previously said in Washington that the punitive measures on goods from Canada and Mexico amounting to 25 percent would apply from Tuesday. "President Donald J. Trump is proceeding with the imposition of tariffs against Canada and Mexico," it said in a statement published by the White House on Monday.
04.03.2025, 09:56
SDA
There is now a threat of a North American trade war with uncertain consequences for the global economy. Trump's announcement caused the stock markets to plummet. The Republican also ordered the import tariffs on goods from China imposed in February to be doubled to 20 percent.
Trump uses tariffs as leverage
According to the New York Times, imports from Canada, Mexico and China together account for more than 40 percent of all US imports. Trump justifies the tariffs against Mexico and Canada by claiming that the neighboring countries are not taking sufficient action against drug trafficking and illegal migration at their common borders. Among other things, the Republican accuses Beijing of failing to prevent the drug fentanyl, which is produced in China, from being smuggled into the USA.
Trump regularly uses tariff threats as a negotiating tactic to force concessions in other areas. The Republican has announced various tariffs in recent weeks - some of which were immediately suspended. This was also the case with the tariffs on goods from Canada and Mexico. At the beginning of February, Trump agreed to concessions from his neighbors, particularly on border security, just a few hours before the threatened punitive tariffs were due to come into force. In return, he postponed the trade restrictions for at least 30 days.
Canada responds with counter-tariffs
It remains to be seen whether Canada and Mexico can reach another agreement with Trump to quickly avert the punitive measures. In any case, Germany is also likely to feel the effects of a trade war in North America - especially the German automotive industry. Almost all manufacturers and many suppliers use Mexico as a cheap production location - and also serve the US market from there. The tariffs against Canada could become a problem for Volkswagen, for example. The Wolfsburg-based company is planning a battery cell factory in Ontario to supply the Group's e-car plants in the USA.
Canadian Prime Minister Justin Trudeau had already announced countermeasures. Canada, for its part, wanted to introduce tariffs of 25 percent on US goods from one minute after midnight (6.01 a.m. CET), he had announced in advance. This would initially only apply to goods with a total value of 30 billion dollars, according to the announcement. After 21 days, this figure will be increased to a total of 155 billion dollars.
Counter-tariffs also from China
A new trade conflict is looming between the USA and China, and thus between the two largest economies, as in 2018. In response to the announcement of new US tariffs, China announced counter-tariffs on agricultural products and further measures against US companies. According to the Beijing Ministry of Commerce, China will impose additional tariffs of 15 percent on chicken, wheat, corn and cotton from the US from March 10. Other agricultural products, including soybeans, pork and beef, will be subject to an additional 10 percent tariff.
Beijing also announced that it would place further US companies on a list of unreliable entities, threatening them with restrictions or complete bans on business activities in China.
US President Donald Trump had previously issued a decree doubling the import tariffs on goods from China that were imposed in February. The punitive duties in force since the beginning of February would be increased from 10 percent to 20 percent, according to an amended order published by the White House. The Republican justified the measure by stating that the drug fentanyl, which is produced in China, continues to be smuggled into the USA.
During Trump's first term in office, a similar conflict with tariffs between the USA and China continued to escalate. Higher US tariffs are a burden on China's export economy, as they make Chinese goods more expensive and therefore less competitive on the US market.
