US president Donald Trump has followed through on his tariff threats he has signed an order to Levy 25% tariffs on imports from Canada and Mexico he also set tariffs of 10% on Chinese Goods the measures are due to come into force on Tuesday the announcement has provoked immediate reactions from the countries concerned the race to undo Decades of international trade Partnerships is on even though the threat had been looming over major US trading partners ever since Donald Trump's campaign for president included talk on tariffs there were stunned reactions across the globe to the newly announced
tax hikes Canada and Mexico were both quick to retaliate like the American tariffs our response will also be far-reaching and include everyday items such as American beer wine and bourbon fruits and fruit juices including orange juice along with vegetables perfume clothing and shoes it'll include major consumer products like household appliances furniture and sports equipment and materials like Lumber and Plastics along with much much more Mexico's president took to I to voice her country's concerns she said that Mexico was not looking for confrontation but added that her country was forced to impose its own tariffs in
defense of its interests both Canada and Mexico will mimic the US numbers and Implement in their turn a 25% tariff rate on us Goods China too reacted to the announced tax hike of 10% that will be added on top of existing Chinese duties in a statement China's Commerce Ministry slammed Washington's quote erous practices saying Beijing was strongly dissatisfied with them Beijing said it would file a lawsuit at the World Trade Organization arguing that the United States seriously violates WTO rules Canada's Premier added that his country is also considering non-tariff measures including limiting the export of
critical minerals and energy he appealed to Canadians to prefer domestic Goods to help the economy there are many ways for you to do your part it might mean checking the labels at the supermarket and picking canadian-made products it might mean opting for Canadian rye over Kentucky bourbon or forgoing Florida orange juice altogether other us trading partners around the world including the EU are now waiting to see who will be hit next by Trump's tariff plans and we are now joined by The Economist and podcaster Kasten jeski Kasten these tariffs can they still still be averted
or are they a done deal now well they they become effective on Tuesday so there are still our almost 48 hours to negotiate uh even though I I think that there is no room for negotiation currently I think we really have to to understand and to learn that that Donald Trump is not only um barking he's also biting and he's really delivering all of election promises so he will make these tariffs really implemented on Tuesday now we're talking about Canada and Mexico there first and foremost uh and China but what are the consequences uh for
Europe well of course we we will already feel this that there is really a trade war going on you listened also to to trudo here uh so this is now a confrontation on all places and we all know that uh that the EU is also on Donal trumps red screen we know this from the from the election campaign the only difference right now is that there are still report and investigation official investigation going on which then will be concluded before April 1st so I think Europe needs to be prepared that come April 1st Donald Trump
will also impose tariffs on Europe are there other countries or other regions of the world that need to prepare to find themselves on uh Trump's tariff Target list I think almost every country needs to be prepared currently and that is also the interesting thing that countries are better prepared than 8 years ago listen to Mexico listen to China and Canada this is a completely different situation than 8 years ago eight years ago we hardly had any imminent reaction by the uh the governments in in case so they only tried to use the promise to go
into talks with Donald Trump this time around we really see that all these countries are pushing back and are also going for confrontation now could we call this a trade War already uh or does a proper trade War looks different and what would it look like well it can always be worse of course but this is clearly the start of a proper trade War uh if one country unilaterally starts to impose tariffs the others then are reacting with also unilateral tffs from their side this is a tariff War um this is a trade war and
of course especially if this is not really about um the the largest economies in the world us China Canada also the EU coming in there this is clearly a fully fledged trade which of course can still further escalate and briefly please in which way will that damage the world economy train what trade tension means that in the end it's the consumer paying the price rate in higher higher higher prices and it's going to be all economies suffering so a trade War doesn't know any winners a trade work only knows losers ceski there Chief economist for
the ING Bank in Germany thank you very much for your analysis Caron
