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Trade Tensions Rise: Canada and China Hit Back at Trump's Tariffs

Donald Trump's promised tariffs on Canadian and Mexican goods have now come into effect. Canada and China are responding with their own tariffs against the USA.

» Published: March 04 2025 at 02:26

Trade Tensions Rise: Canada and China Hit Back at Trump's Tariffs
Photo: Sean Kilpatrick/AP/TT

The deadline expired at 6 am on Tuesday, Swedish time, and the US trade tariffs against Canada and Mexico came into effect.

Canada's Prime Minister Justin Trudeau announced shortly beforehand that the country would respond with its own tariffs.

"Canada will, from one minute past midnight, respond with 25 percent tariffs on American goods worth $155 billion", Trudeau said in a statement late on Monday evening, Canadian time.

$155 billion Canadian dollars corresponds to approximately $107 billion American dollars, or around 1.1 billion Swedish kronor.

Trudeau: Breaking the agreement

Tariffs on goods worth $30 billion Canadian dollars will be introduced immediately and tariffs on the remaining $125 billion will be introduced within 21 days.

Trudeau says there is no justification for Trump's tariffs.

"The tariffs will disrupt an incredibly successful trade relationship. They will break the very trade agreement negotiated by President Trump during his last term", the Prime Minister continues.

Raising tariffs against China

US President Donald Trump also announced on Monday that he would raise the previously announced 10 percent tariffs on Chinese goods to 20 percent. The decision was motivated by what is called "Beijing's failure to address the illegal fentanyl trade".

The new 20 percent tariffs came into effect simultaneously with the import tariffs on goods from Mexico and Canada.

In response, China announced early on Tuesday morning, Swedish time, that the country would introduce new tariffs on a range of agricultural products from the US from next week.

"An additional 15 percent tariff will be imposed on chicken, wheat, corn, and cotton", Beijing's finance department said in a statement.

Furthermore, new tariffs of 10 percent will be introduced on a range of products, including soybeans, beef, pork, fruit, vegetables, and dairy products.

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By TTThis article has been altered and translated by Sweden Herald
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