WASHINGTON: Mounting trade wars between the United States and its largest economic partners deepened on Tuesday (Mar 4) as US tariffs on Canada, Mexico and China kicked in, sparking swift retaliation from Beijing and Ottawa.
Stinging US tariffs on Canadian and Mexican goods came into effect as a deadline to avert President Donald Trump’s levies passed without the nations striking a deal – a move set to snarl supply chains.
Trade war fears sent markets falling in Asia and Europe on Tuesday in response to what analysts said were its steepest tariffs on imports since the 1940s.
Trump had announced – and then paused – the blanket 25 per cent tariffs on imports from major trading partners Canada and Mexico in February, accusing them of failing to stop illegal immigration and drug trafficking.
In pushing ahead with the duties, Trump cited a lack of progress in tackling the flow of drugs like fentanyl into the United States.
The duties stand to impact over US$918 billion worth of US imports from both countries.
The sweeping duties on Canada and Mexico are set to hamper supply chains for key sectors like automobiles and construction materials, risking cost increases to households.
Mexico supplied 63 per cent of US vegetable imports and nearly half of US fruit and nut imports in 2023, according to the US Department of Agriculture.
More than 80 per cent of US avocados come from Mexico – meaning higher import costs could push up prices for American shoppers.
Truck drivers at the Otay Mesa border crossing in Mexico told AFP they were already feeling the impact of the tariffs as they lined up to cross into the United States on Tuesday morning.
Work was drying up because many companies in the Mexican border city of Tijuana export Chinese goods, said driver Angel Cervantes.
“And since the tariffs are also against China, work is going down for the (transport) companies,” he added.
