China, Canada retaliate with tariffs on US as trade war kicks off
By Frank Prenesti
Date: Tuesday 04 Mar 2025
(Sharecast News) - The first salvoes in the Donald Trump-inspired trade war were fired on Tuesday as China and Canada unveiled retaliatory measures against the US after the president went ahead with his tariffs against his immediate neighbours overnight.
China announced Tuesday it will impose additional tariffs of up to 15% from March 10 on imports of key U.S. farm products, including chicken, pork, soy and beef, and also expanded controls on doing business with US firms.
Goods from Canada and Mexico - America's biggest trading partners - will be slapped with tariffs of 25%, while levies against China will be doubled to 20%.
Chinese imports of US chicken, wheat, corn and cotton will face an extra 15% tariff, the Commerce Ministry said, with the tariff on sorghum, soybeans, pork, beef, seafoods, fruit, vegetables and dairy products increased by 10%.
Beijing also placed 10 more US firms on its unreliable entity list, banning them from engaging in China-related import or export activities and from making new investments in the country.
Canadian Prime Minister Justin Trudeau responded with an immediate 25% tariff on CAN $30bn worth of US imports. He had warned previously that American beer, wine, bourbon, home appliances and Florida orange juice would be targeted.
Tariffs will be placed on another CAN $125bn of US goods if US levies were still in place in 21 days.
"Tariffs will disrupt an incredibly successful trading relationship," Trudeau said, adding that they would violate the US-Mexico-Canada free trade agreement signed by Trump during his first term.
Trump's actions have sparked a global sell-off on stock markets as investors scaled back their appetite for risk.
Berkshire Hathaway chief executive Warren Buffett cautioned that punitive duties could trigger inflation and hurt consumers. "They're an act of war, to some degree," said Buffett. "Over time, they are a tax on goods. I mean, the Tooth Fairy doesn't pay 'em."
Reporting by Frank Prenesti for Sharecast.com
Special promo:
Trading the Forex Market? Visit FXmania.com to get advanced infomation about currencies and the Foreign Exchange
Market.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN