On January 21, U.S. President Donald Trump announced his intention to impose a 25% tariff on all imports from Mexico and Canada, effective February 1. This decision aligns with his longstanding \"America First\" agenda, reiterating promises made during his campaign to enact punitive tariffs on neighboring countries.
The announcement has sparked swift condemnation from key trade partners. Mexican President Claudia Sheinbaum warned that Mexico would respond with retaliatory measures if the tariffs are implemented, cautioning that such actions would hinder bilateral trade and harm both economies. Canadian Foreign Minister Mélanie Joly echoed these concerns, emphasizing that the added costs would ultimately burden American consumers. Canada is prepared to retaliate with tariffs on American products such as orange juice, toilets, and steel.
Both Mexico and Canada have since announced their own sets of retaliatory tariffs. These escalating trade tensions threaten to disrupt North America's automotive industry and job markets, potentially delivering a significant blow to economic growth across all three countries.
Globally, nations are developing strategies to reduce dependence on the U.S. market and protect their economic interests. The European Union (EU), traditionally a close U.S. trade partner, is accelerating internal market integration and pursuing new free trade agreements to diversify trade risks. In December 2024, European Commission President Ursula von der Leyen announced the finalization of a long-anticipated trade agreement with Mercosur, a South American bloc comprising Argentina, Brazil, Paraguay, and Uruguay. Covering a free trade zone of over 700 million people, the agreement could save the EU an estimated 4 billion euros in tariffs in its first year alone.
These developments reflect a shifting global trade landscape. Countries are responding proactively to unilateral trade policies, underscoring the importance of collaborative economic relationships and highlighting the potential repercussions of protectionist measures.
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Countries worldwide deploy countermeasures to offset Trump's tariffs
cgtn.com
