The head of the United States Donald Trump on Saturday imposed 25% trade duties on goods from Canada and Mexico and 10% on Chinese imports, Bloomberg reported.
Canada immediately announced mirror 25% tariffs on goods from the United States totaling $107 billion, while Mexico announced retaliatory measures. Beijing reacted with restraint, given that the events unfolded in the midst of the Lunar New Year celebrations. China’s Ministry of Commerce expressed deep displeasure and promised a proportional response without revealing specific steps; its statement also mentioned its intention to file a formal complaint with the WTO.
The U.S. duties are due to take effect on Tuesday night, and Xi Jinping has few options to respond beyond imposing retaliatory tariffs, the portal wrote. According to Gary Ng, senior economist at Natixis SA, China could limit exports of strategically important minerals or the access of some U.S. companies to its market.
