Donald Trump said imposed customs duties of 10 % on all imports from China and 25 % on those from Mexico and Canada. Ottawa and Mexico who intend to reply to this trade war.
In response to considerable customs duties imposed by US President Donald Trump, Canada and Mexico have ordered retaliatory customs duties on American products. Companies and consumers of the two countries are wondering how the new trade war could affect them.
In Canada, 25 % increase in American imports
Canada first ordered customs duties of 25 % on American imports from Tuesday, especially on drinks, cosmetics and paper products worth 30 billion Canadian dollars (20 billion of euros). A second list of goods was to be published soon, including passenger vehicles, trucks, steel and aluminum products, certain fruits and vegetables, beef, pork, dairy products and more.
These goods are estimated at 125 billion Canadian dollars (83 billion euros).
Until now, Mexico has just said that it would impose customs duties in retaliation, without mentioning rates or products.
Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum met by phone on Saturday after Trump administration imposed new customs duties – 25 % on goods from Canada and Mexico, with a lower rate 10 % for Canadian oil, and 10 % on imports from China.
Justin Trudeau’s office said in a statement that Canada and Mexico had agreed to “Strengthen solid bilateral relations” between their countries. Canadian officials had a thorough dialogue with their Mexican counterparts, but a senior Canadian civil servant said that he would not go so far as to say that the tariff responses were coordinated.
Canada is the largest export market for 36 states, and Mexico is the largest trading partner in the United States.
Canada and Mexico have declared these customs duties despite Donald Trump’s threat to increase customs duties in the event of retaliatory measures on American products.
“We are certainly not climbing, but we will defend Canada”said Trudeau at the end of the day.
