Canada, China, Mexico hit back in trade war

Canada and Mexico vowed to hit back at the US after President Donald Trump followed through on threats to impose 25% tariffs on imports of their goods, instigating a trade war that's set to reshape global supply chains.

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Canadian Prime Minister Justin Trudeau said the country will impose 25% tariffs against C$155 billion ($106 billion) of US goods, while Mexican President Claudia Sheinbaum also pledged retaliation. China vowed "corresponding countermeasures" to Trump's 10% levy on Chinese products, without immediately announcing any new tariffs.

A tit-for-tat tariff fight among the world's major economies Trump has warned Europe that it's in his crosshairs, too-adds fresh headwinds to the outlook for global growth, for profits of companies suddenly facing higher import taxes and for financial markets adjusting to new trade flows.

"It marks a new phase of the trade war, which targets multiple countries, including allies and China, to meet US economic and geopolitical policy goals," said Gary Ng, senior economist at Natixis SA.