US trade wars: Canada and Mexico negotiate, and China takes the fight to the next level
4 February 10:18
US President Donald Trump has postponed the introduction of duties on Mexican and Canadian goods for a month after talking with the leaders of these countries. This was stated by Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau, Komersant ukrainskyi reports.
According to the BBC, Sheinbaum claims that the United States will postpone the introduction of 25% duties on goods from Mexico for a month after a “good conversation” with Trump. According to her, this happened after the two leaders agreed, among other things, that Mexico would reinforce the border with 10,000 National Guard troops, who would be deployed immediately.
They will be tasked with preventing drug smuggling into the United States – with a particular focus on fentanyl, which was one of the problems Trump mentioned.
Sheinbaum adds that the United States has also committed to working to prevent the trade of high-powered weapons to Mexico.
Trudeau also reported a “good conversation” with Trump, which resulted in at least a temporary understanding.
“Canada is implementing our $1.3 billion border plan – strengthening the border with new helicopters, technology and personnel, improving coordination with our U.S. partners, and increasing resources to stem the flow of fentanyl. About 10,000 troops are working and will continue to work on the front lines to secure the border,”
– trudeau wrote in X.
In addition, he said that Canada is taking on new commitments in the fight against drug production and trafficking.
Thus, after the first loud statements about their readiness for mirror measures, Canada and Mexico are still trying to avoid trade wars with the United States.
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China’s response
China is doing exactly the opposite – its first reaction was quite calm. After the US imposed an additional 10% duty on Chinese goods, it said it would file a complaint with the World Trade Organization. However, today it has become known that China is taking tough measures in response.
According to Reuters, the Chinese Ministry of Finance announced the imposition of 15% duties on U.S. coal and liquefied natural gas (LNG), as well as 10% on oil, agricultural equipment and certain U.S. car models.
In addition, Beijing has launched an antitrust investigation into Alphabet Inc. (Google’s parent company) and added PVH Corp, which owns such brands as Calvin Klein, and the American biotechnology corporation Illumina to the list of “unreliable companies”.
Additionally, the Ministry of Commerce and the Customs Administration of China have imposed export controls on certain rare earth elements and metals that are critical for the production of high-tech products and the development of clean energy.
Trump’s trade wars and their impact on global markets
Earlier, US President Donald Trump imposed 25% tariffs on imports from Canada and Mexico and 10% tariffs on goods from China, citing their role in facilitating illegal migration and drug trafficking to the US.
These measures have caused concern among US companies that depend on metal imports from Canada and Mexico. They are expected to look for alternative sources of supply, in particular in the Middle East, India, Chile and Peru, which could lead to higher prices for aluminum and copper in the United States.
In addition, Canadian consumers have responded to the imposition of duties by boycotting American goods, canceling trips to the United States and refusing to buy American alcohol.
Economists warn that such trade disputes could slow global economic growth and cause inflation. Stock markets in the Gulf countries reacted with a decline due to fears of a possible trade conflict. The cryptocurrency market also collapsed.