U.S. President Donald Trump announced a 25 percent tariff on Mexican and Canadian goods and a 10 percent tariff on Chinese imports from Saturday.
Trump said Friday he would impose tariffs of less than 10 percent on Canadian oil, which could take effect after Feb. 18.
Referring to plans to impose tariffs on the European Union (EU) in the future, Trump said that this alliance has not treated the United States well.
White House press secretary Caroline Levitt said the tariffs were in response to Canada and Mexico allowing “illegal fentanyl” into the United States. More than 10 million Americans have died because of these drugs.
Trump has said that this step has been taken in response to the large number of illegal immigrants crossing the US border and to address the trade deficit with neighbors.
“The president made and kept that promise,” Levitt said at a White House news briefing on Friday. ”
Without naming the United States, a top Chinese official warned against trade protectionism in early January. Trump’s return as president has raised fears of a trade war between the world’s two largest economies.
Speaking at the World Economic Forum in Davos, Switzerland, Chinese Vice Premier Ding Xuoxiang said his country was looking for a “win-win” solution to ease trade tensions and was looking to expand imports.
China, Canada and Mexico are America’s top trading partners. These three countries accounted for 40 percent of U.S. imports last year. Due to the excessive new tariffs, there is a possibility of a major trade war, which could increase the prices of various commodities in the United States.
Canadian Prime Minister Justin Trudeau said on Friday, “It’s not that we want to take this step; But if he increases first, we will not sit still. ”
Canada and Mexico have already said they will respond to the U.S. tariffs in their own way. At the same time, they are trying to reassure Washington that they are taking steps to address US concerns about the border.
The Chinese embassy in the United States could not be reached for comment.