U.S President Donald Trump has imposed fresh taxes on goods from Canada, Mexico, and China.
Karoline Leavitt, the White House press secretary, said that commodities from Canada and Mexico will suffer a 25% levy, while Chinese items will face a 10% tariff.
The U.S President also hinted at possible tariffs on oil imports from Canada around February 18.
In wake of the new tariffs, Canadian Prime Minister Justin Trudeau has promised a “forceful but reasonable” response.
Mexico is also preparing its retaliation plans but hasn’t disclosed any details yet.
China, however, has vowed to “firmly defend” its interests against these US actions.
The tariffs are part of Trump’s plan to push Canada and Mexico to tighten border controls and stop drug smuggling.
Trump has maintained that “the tariffs are going to make us very rich and very strong.”
However, economists have cautioned that these moves could upend supply chains and stoke inflation.
Trade analysts also fear retaliatory moves from impacted nations.
If fully implemented, Trump’s tariff plan could cover more than $1.3 trillion in U.S imports.
The amount exceeds the $360 billion in duties imposed on Chinese goods during his first term.
The announcement has already resulted in reduced orders and workforce cuts at factories in China, with some firms shifting production to Southeast Asian countries like Vietnam and Cambodia amid uncertainty.
Along with the new tariffs, Trump has also warned BRICS nations of 100% tariffs if they try to replace the U.S dollar in international trade.
He wrote on his social media platform Truth Social that “there is no chance that BRICS will replace the US dollar in international trade.”
“The idea that the BRICS Countries are trying to move away from the Dollar…is OVER,” he asserted.
