The US tariffs on Chinese, Mexican, and Canadian imports have come into effect today. US President Donald Trump has announced 25 per cent tariffs against Canada and Mexico, and 20 per cent tariffs against China, doubling the levy on China from last month. On the other hand, Canada has said it will retaliate with 25 per cent tariffs on 150 billion dollars worth of US goods.
China has announced 10-15 per cent tariffs on US agricultural imports and is also targeting US firms with retaliatory actions, while Mexico has also vowed to retaliate. Mr Trump said the import taxes will force Canada and Mexico to take more action to curb illegal drugs and migrants entering the country.
Meanwhile, US markets dropped, and Asian markets turned jittery at the possibility of a trade war. The prospect of a widening trade war has experts warning that American consumers will likely face higher costs for certain products, including groceries, electronics, and automobiles.
