Substantial tariff hikes for goods from Canada, Mexico and China went into effect at midnight on Tuesday, and China has already reciprocated, as the threats underpinning U.S. President Donald Trump’s trade policy reached their deadline on March 4.
Canada and Mexico now have 25 percent tariffs imposed on their goods (though it’s only ten percent for Canadian energy), and the tariff on Chinese goods was increased on Monday from ten to 20 percent. Beijing has already retaliated with a 15 percent tariff on U.S. agricultural imports, early reports indicate.
Canadian Prime Minister Justin Trudeau has pledged reciprocal tariffs on U.S. goods over the next three weeks.
“It’s a very powerful weapon that politicians haven’t used because they were either dishonest, stupid or paid off in some other form,” President Trump said Monday. “And now we’re using them.”
Maine’s congressional delegation expressed concern on Monday, specifically with regard to Canadian tariffs. In a joint statements, U.S. Senators Susan Collins (R) and Angus King (I) and U.S. Representative Chellie Pingree (D) said:
“Small businesses and families in Maine and across the country will be caught in the middle during a time when so many are struggling to put food on the table and keep the lights on. Ultimately, it is our hope that the Trump administration is able to work collaboratively with Canada to address issues of shared concern and foster economic cooperation, rather than engage in a tit-for-tat trade war.”
Asian markets have already shown signs of volatility, closing on Tuesday with losses while oil has also shown a dip in trading on Tuesday. Bitcoin plunged 10 percent on Monday.
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