Emmanuel Ochayi
The United States, China, and Canada are locked in a growing trade war after US President Donald Trump raised tariffs on Chinese goods to 20% and imposed a 25% levy on imports from Canada and Mexico. The White House claims the move will reduce fentanyl inflows and curb illegal migration.
In response, Canada has imposed 25% tariffs on $150 billion worth of American goods. China has also introduced duties of 10-15% on key US agricultural products. The back-and-forth measures have fueled uncertainty in global markets, with investors bracing for further economic disruptions.
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China Imposes New Tariffs on US Goods
Beijing’s latest tariffs, which take effect on March 10, target American agricultural products, a key sector in US exports. The new duties include a 15% tariff on wheat, corn, cotton, and chicken, while soybeans, pork, beef, dairy, and fresh produce will face a 10% levy.
Additionally, China has blacklisted 10 US companies, including biotechnology giant Illumina. The ban, effective from March 4, prevents the firm from exporting gene sequencing machines to China. Beijing has accused the company of enforcing “discriminatory measures against Chinese firms,” further deepening trade tensions.
Canada Hits Back With Higher Tariffs
Canada has also moved quickly to counter Trump’s tariff policies. The government has introduced a 25% duty on US goods worth $150 billion. Canadian officials have expressed concerns over the impact of these measures on businesses and consumers.
David Eby, the governor of British Columbia, strongly criticized Trump’s trade strategy, saying, “As the President threatens the entire world, it will require the entire world to stand together and draw a line in the sand.” He added that while the tariffs create difficulties for Canadian industries, they will also “confuse and hurt American consumers.”
Tariffs Shake Global Markets
The ongoing trade war has triggered volatility in global financial markets. US stock prices have dropped, while Asian markets have also experienced instability. Economic analysts warn that the tariffs could lead to higher costs for American consumers and businesses.
Economists predict that as the tariffs take full effect, prices for everyday goods in the US will rise. The agricultural sector, in particular, is expected to suffer, as China is a major importer of American farm products.
Uncertain Future for Trade Relations
With no resolution in sight, the tariff war between the US, China, and Canada continues to escalate. Industry experts warn that prolonged trade tensions could disrupt global supply chains and slow economic growth.
As governments stand firm on their tariff policies, businesses and consumers brace for the impact of rising costs and market instability.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
