China, Canada, Mexico respond to U.S. tariffs in retaliation

U.S. President Donald Trump signed an executive order on Saturday (local time) to impose a 25 percent tariff on imports from Canada and Mexico, and an additional 10 percent tariff on Chinese products starting from midnight on Tuesday (2 p.m. KST). The Trump administration, which has officially pledged to weaponize tariffs, has made the first decision to impose duties on the country’s top three trading partners.

In response, Canada announced that it would impose a retaliatory tariff of 25 percent on U.S. goods while China also threatened to file a complaint against the United States with the World Trade Organization (WTO). Experts project that the global trade war will only intensify. Furthermore, there are growing concerns that the South Korean economy will be negatively affected as well given that President Trump has shown his willingness to impose tariffs on South Korean products, and there are many South Korean businesses in the Mexican market.

"This was done through the International Emergency Economic Powers Act (IEEPA) because of the major threat of illegal aliens and deadly drugs killing our Citizens, including fentanyl,”

President Trump wrote on Truth Social on Saturday that the implementation of tariffs on imports from Canada, Mexico and China. “It is my duty as President to ensure the safety of all.” Normally, it takes congress approval to revise tariff systems. However, he implemented higher tariffs immediately by exercising his presidential authority based on the IEEPA.

An even more worrying aspect of this situation is that the Trump administration has kept open the possibility of increasing tariff rates or broadening the coverage of the measure if the three trading partners impose retaliatory tariffs on U.S. products. Peter Navarro, senior counselor for trade and manufacturing for the U.S. government, said that if the three governments protest against the U.S. tariff decision, they would only be met with higher duties. However, Washington announced a 10 percent tariff on Canadian oil and gas unlike other products, which could have a direct impact on domestic oil prices.

The decision faced a strong backlash from the three countries. Canadian Prime Minister Justin Trudeau held an emergency press conference on the same day that it would apply a 25 percent tariff to U.S. goods worth 155 billion Canadian dollars (156 trillion won) in response to Washington’s tariff action. Likewise, Mexican President Claudia Sheinbaum posted on X that he ordered tariff measures for U.S. products in retaliation. The Chinese Commerce Ministry also said on Sunday that it would bring a case against Washington to the WTO and take the corresponding measures.


Woo-Sun Lim imsun@donga.com