04 March,2025 08:40 AM IST | Washington | Agencies
Imports from Canada and Mexico are now to be taxed at 25 per cent. Pic/AFP
President Donald Trump's long-threatened tariffs against Canada and Mexico went into effect Tuesday, putting global markets on edge and setting up costly retaliations by the United States' North American allies. Starting just past midnight, imports from Canada and Mexico are now to be taxed at 25 per cent, with Canadian energy products subject to 10 per cent import duties.
The 10 per cent tariff that Trump placed on Chinese imports in February was doubled to 20 per cent, and Beijing retaliated Tuesday with tariffs of up to 15 per cent on a wide array of US farm exports. It also expanded the number of US companies subject to export controls and other restrictions by about two dozen.
Canadian Prime Minister Justin Trudeau said his country would slap tariffs of more than $100 billion on American goods over the course of 21 days. Mexico didn't immediately detail any retaliatory measures. The US president's moves raised fears of higher inflation and the prospect of a devastating trade war even as he promised the American public that taxes on imports are the easiest path to national prosperity.
It's a very powerful weapon that politicians haven't used because they were either dishonest, stupid or paid off in some other form," Trump said Monday at the White House. "And now we're using them. Canada and Mexico tariffs were supposed to begin in February, but Trump agreed to a 30-day suspension to negotiate further with the two largest US trading partners.
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Imposition of high tariffs on China, Mexico, and Canada by the US is expected to help Indian exporters in increasing their shipments to the American market, experts say. They added that sectors which can be benefited include agriculture, engineering, machine tools, garments, textiles, chemicals, and leather.
India was the fourth-largest gainer when the US imposed higher duties on Chinese goods during US President Donald Trump's first tenure. "This can help Indian exporters in sectors such as agriculture, engineering, machine tools, garments, textiles, chemicals, and leather," President-designate of Federation of Indian Export Organisations (FIEO) S C Ralhan said. "Indian exporters would have to tap into these opportunities," he said.
China on Tuesday retaliated against US President Donald Trump's imposition of second round of 10 per cent tariffs on its export by slapping an additional 15 per cent tariffs on American goods and initiated legal action against Washington in WTO while leaving the door open for talks to address each other's concerns.
China will impose additional tariffs on some products imported from the United States, effective from March 10, the China's Customs Tariff Commission said.
An additional 15 per cent tariff will be imposed on imported chicken, wheat, corn and cotton originating from the US. Sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables and dairy products will be subject to an additional 10-per cent tariff.
Additionally, China decided to add 10 US firms to the country's unreliable entity list. They include companies linked to defence and security, aviation, IT and dual-use items that carry both civilian and military applications.
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