Justin Trudeau and China announce retaliation against U.S. tariffs: Trade tensions escalate
Justin Trudeau and China have announced retaliatory measures against U.S. tariffs, further escalating trade tensions.
In response to U.S. President Donald Trump’s declarations on March 3, 2025, both China and Canada have announced retaliatory tariffs. Trump’s decision to impose 20% tariffs on Chinese goods and 25% on Canadian products has sparked immediate reactions from both nations.This escalation of trade measures has prompted both countries to outline their own retaliation plans, signaling an intensification of the ongoing trade tensions.
Both Canada and China have expressed strong dissatisfaction with Trump’s move, calling the new tariffs unjustified and detrimental to global trade. The retaliatory actions are set to impact not only the economies of the U.S., Canada, and China, but also the broader global trade environment.
Canada’s response to U.S. tariffs
Prime Minister Justin Trudeau condemned the U.S. tariffs and outlined Canada’s immediate response. He confirmed that Canada would impose a 25% tariff on US$30 billion worth of U.S. imports. Trudeau also mentioned that if the U.S. maintains its current tariffs on Canadian energy and other goods, Canada would escalate the situation by imposing additional tariffs on US$125 billion in U.S. products in the coming weeks.
The announcement comes after Trump moved forward with 25% tariffs on Canada and Mexico and a 10% tariff on China, despite last-minute negotiations. Photo: The New York Times.
Moreover, Canada is also considering non-tariff retaliations, which could involve halting energy exports, such as gas, oil, and electricity, to the United States. Such a move would have a significant impact on U.S. energy consumers.
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China’s countermeasures to U.S. tariffs
Meanwhile, China has also announced countermeasures in response to the U.S. decision to raise tariffs on Chinese products. Effective March 10, 2025, China will impose tariffs ranging from 10% to 15% on various U.S. agricultural products, including soybeans, pork, cotton, and other goods. China’s Ministry of Commerce condemned the U.S. tariffs as "unilateral" and warned that they would harm the global trade system, increase burdens on U.S. businesses, and undermine the cooperation between the two nations.
The retaliatory measures from China, along with the continued uncertainty, have caused volatility in global markets, particularly affecting stock exchanges in Japan and Hong Kong. President Trump has justified these actions as a necessary step to balance trade deficits and protect American industries, particularly accusing China of failing to address the fentanyl trade.