How Trump Sparked a Comprehensive Tariff War

The U.S. government has imposed a 25% tariff on imports from Mexico and Canada, along with new tariffs on products from China, increasing rates on them to 20%. The U.S. government has imposed a 25% tariff on imports from Mexico and Canada, along with new tariffs on products from China, increasing rates on them to 20%. Both countries affected by the 25% tariffs have promised to respond to the U.S. actions shortly. Details regarding the escalating trade wars can be found in the "Mendeleva's Table" column.

Trade wars are essentially economic conflicts that arise between two or more nations. However, the ambition to seize foreign markets usually results in all parties feeling the consequences and experiencing rising inflation. This poses a serious threat to the global economy. Shortly after taking office, Donald Trump began implementing additional tariffs on imports under the pretext of combating drug smuggling and illegal immigration. While the tariffs on Canadian and Mexican products were delayed for a month due to negotiations, the 10% tariffs on imports from China took effect on February 4.

It has now become clear that the United States is imposing tariffs of 25% on nearly all imports from Canada and Mexico while doubling tariffs on goods from China from 10% to 20%.

The retaliatory measures did not take long. The President of Mexico indicated the possibility of seeking new trade partners, though no details were revealed.

Claudia Sheinbaum, President of Mexico:

"After a 30-day pause, the U.S. government unilaterally decided to impose 25% tariffs on Mexican exports. This unilateral decision affects national and foreign companies operating in our country and impacts our citizens. Therefore, we have decided to respond with tariff and non-tariff measures, which I will announce at the central square on Sunday."

Canada also responded to Washington's tariff policy. The country's Foreign Minister stated that Ottawa is prepared for a trade war with the U.S., with retaliatory tariffs amounting to $107.4 billion. Prime Minister Justin Trudeau addressed Trump directly in a video message.

Justin Trudeau, Prime Minister of Canada:

"Donald, over the eight years we have worked together, we have achieved great progress. We signed a historic agreement that has led to record job creation and economic growth in both our countries. Together, we have succeeded on the world stage, as Canada and the U.S. have done together for decades and generations. Now we must work together to ensure even greater prosperity for North Americans in an unstable and challenging world. It is not my habit to agree with the Wall Street Journal, but, Donald, they point out that while you are a very smart guy, this is a very foolish move. We, two friends, are fighting exactly how our opponents around the world want to see us fight."

In several provinces of Canada, sales of American products have been halted. Cafés have begun to rename 'Americano' coffee to 'Canadian' in protest. Ottawa has also filed a complaint with the World Trade Organization's dispute resolution body. The day before, Beijing did the same. Additionally, starting March 10, China will impose extra tariffs of 10-15% on U.S. agricultural products in response to Washington's tariff policy. Additional tariffs of 15% will apply to chicken, wheat, corn, and cotton from the U.S., while 10% tariffs will be imposed on sorghum, soybeans, pork, beef, seafood, fruits, vegetables, and dairy products.

Lin Jian, Representative of the Chinese Foreign Ministry:

"The U.S. is politicizing and weaponizing economic and trade issues, using fentanyl as a pretext to impose tariffs on China, creating obstacles to normal economic and trade investment cooperation between China and the U.S., which harms the economic interests of the U.S. and its international standing."

It seems that Trump has no intention of stopping. In his speech to Congress, the President announced plans to introduce new retaliatory tariffs on imports starting April 2, emphasizing that he initially wanted to set the tariff implementation date for April 1 but decided to delay it to avoid associations with April Fool's Day.

Donald Trump, President of the USA:

"If you don't produce your product in America, then under the Trump administration, you will pay tariffs, and in some cases, quite significant ones. Other countries have imposed tariffs against us for decades; now it is our turn to use them against them. On average, the European Union, China, Brazil, India, Mexico, and Canada charge us much higher tariffs than we charge them. This is extremely unfair."

U.S. farmers are furious, believing that the trade war will "hit rural America hard." There is also little support for the trade war in the foreign media. The Economist reports that tariffs imposed by the U.S. against Canada and Mexico will be the most dangerous act of protectionism by an American president in nearly a century.

The Axios staff are convinced that tariffs are likely to provoke a trade war with the three largest U.S. trading partners, which could lead to price increases on a wide range of goods for American consumers. A tariff war is always a risky venture; if America's trading partners do not make concessions but instead engage in conflict and impose retaliatory measures, the GDP of the United States could shrink by 1.5% to 2% as early as next year.