Rising Trade War 2025: Mexico, Canada Retaliate in Trade War; China Takes Trade War Battle to WTO

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Rising Trade War 2025: Mexico, Canada Retaliate in Trade War; China Takes Trade War Battle to WTO: US President Donald Trump signed an order on Saturday to impose tariffs on goods imported from Mexico, Canada, and China. After this, the possibility of a trade war has increased due to the retaliation of these countries. President Trump has not mentioned India yet.

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China contributes the most to the trade deficit

According to the Research and Information System, China, Mexico, and Canada are the countries that contribute the most to the US trade deficit. China’s contribution is 30.2 percent, Mexico’s is 19 percent, and Canada’s is 14 percent, while India’s contribution is only 3.2 percent. President Trump said in his post shared on the internet media that these tariffs are necessary for the safety of Americans.

Declaration of economic emergency

Trump pressured the three countries to curb the illegal manufacture and export of fentanyl (painkiller). He also pressured Canada and Mexico to stop illegal immigration to the US. Trump declared an economic emergency to impose a 10 percent duty on all types of imports from China and a 25 percent duty on imports from Mexico and Canada.

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Mexico will respond to the US (Rising Trade War 2025)

Energy, including oil, natural gas, and electricity imported from Canada, will be taxed at the rate of 10 percent. This action has created an economic deadlock between the US and its two biggest trading partners, Mexico and Canada. After Trump’s move, the president of Mexico also retaliated and ordered the imposition of duty.

Trudeau also imposed 25 percent duty

Canadian Prime Minister Justin Trudeau said his country would impose a 25 percent duty on up to $155 billion worth of US imports. Canadian duties on $30 billion worth of US wine and fruit will come into effect Tuesday at the same time as the US duties. He said it would really affect the American people. As a result, the prices of groceries and other goods would go up.

America betrayed!

Trudeau expressed the views of Canadians who feel betrayed by their neighbor and long-time ally, the US. He reminded Americans that Canadian soldiers had fought alongside them in Afghanistan and helped them deal with countless crises, from the California wildfires to Hurricane Katrina.

Mexico denied US allegations

Trudeau said that today’s action by the White House has separated us instead of bringing us together. Meanwhile, Mexican President Claudia Sheinbaum said that she has instructed her economy secretary to take retaliatory action, which includes imposing tariffs and taking other steps to protect Mexico’s interests.

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She wrote on X, “We completely reject the White House’s allegation that the Mexican government has an alliance with criminal organizations. We oppose every intention to interfere in our territory.”

According to Reuters, Trudeau and Sheinbaum discussed the imposition of US tariffs over the telephone. They agreed to work together in areas of common interests and to enhance strong bilateral relations between the two countries. The Chinese government has condemned the imposition of a 10 percent tariff on Chinese imports by the Trump administration.

China will drag America to WTO

China’s Finance and Commerce Ministries said that we will challenge the tariffs imposed by President Trump in the World Trade Organization. The Commerce Ministry said that Trump’s move seriously violates international trade rules. It urged the US to negotiate openly and strengthen cooperation.

Trump had talked about imposing tariffs during the election campaign

Trump had talked about imposing tariffs on these countries during his election campaign. By taking steps in this direction, he has fulfilled one of his promises, but this is likely to cause turmoil in the global economy. Imposing tariffs by Trump is likely to increase inflation.

This may end the confidence of voters that Trump can bring down the prices of groceries, gasoline, housing, automobiles, and other commodities as per his promise.