The U.S. has imposed tariffs of 25% on all goods from Mexico and Canada starting March 4, 2025. The measure comes following a one-month delay during which negotiations with the two countries took place. Additionally, duties on Chinese goods have also doubled, increasing from 10% to 20%

Canada immediately implemented a 25% tariff on U.S. imports worth US$21 billion. Furthermore, an additional $86 billion in penalties would be enacted if the tariffs were still in place after 21 days. Canada’s prime minister, Justin Trudeau said the tariffs would violate the U.S.-Mexico-Canada free trade agreement signed in 2020.

China countered by announcing additional tariffs of 10% to 15% on U.S. agricultural goods and a series of measures against designated U.S. entities. China also initiated a dispute complaint against the U.S. tariffs through the World Trade Organization.

Mexican President Claudia Sheinbaum said on Tuesday that her country would respond to the U.S. tariffs with its own retaliatory measures. She said details would be provided later in the week.

Data from Linerlytica indicates that previously imposed import tariffs have failed to reduce the U.S. trade gap. In 2024, U.S. loaded container imports outpaced exports by 2.4 times. Total laden imports surged by 24% from 2017 to 2024, while laden exports fell by -8%, resulting in a 54% increase in the number of empty containers being repositioned out of the U.S.

Source: splash247.com