Following a one month postponement, the US has gone live with its 25% tariffs on Canada and Mexico today, and also hiked the levy on China by a further 10%.

Unhappy with the flow of illegal drugs and migration, Trump announced the 25% tariffs on its closest neighbours on 4th February, before suspending them for 30 days. However, he announced yesterday “No room left for Mexico or for Canada. The tariffs, you know, they’re all set. They go into effect tomorrow.”

Trump also turned his attention back to China and signed an executive order to double the hike he imposed on Chinese products last month to 20%. We understand that products shipped from the US to China that depart before 10 March and arrive before 12 April may not be subject to the additional hike.

The introduction of these tariffs has the US on the verge of a trade war with its three biggest trading partners.

While Mexican President Claudia Sheinbaum is yet to officially respond to yesterday’s news, Canada vowed that it would impose 25% tariffs against US goods in retaliation.

China has immediately confirmed its own counter measures, including 10-15% tariffs on US agricultural products. Beijing has also targeted several US aviation, tech and defence businesses, by adding them to an unreliable entity list and imposing export controls

Should you have concerns or require further information, then please do not hesitate to get in touch with a member of the Westbound team, who will do their best to help.

 

*UPDATE – 7 Mar –  Trump pauses Canada and Mexico tariffs for certain products until 2 April *

If you have any questions regarding the above, then Westbound are here to help. So, please do not hesitate to contact us.