Canada, Mexico Hit Back at US Tariffs, China Vows Action

Canada and Mexico vowed to hit back at US tariffs with tit-for-tat measures, after President Donald Trump followed through on his threats of general levies of 25% and began a trade war that's set to reshape global supply chains.

- Bloomberg

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 pledged retaliatory tariffs. China vowed "corresponding countermeasures" to Trump's 10% levy on Chinese exports, without announcing any new tariffs.

The responses from three of America's biggest trading partners came shortly after Trump signed orders for the US tariffs on Saturday. The measures take effect at 12:01 a.m. on Tuesday, and it's unclear if that offers a last-chance window for a deal.

"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.

China's Commerce Ministry pledged to file legal proceedings to the World Trade Organization in a Sunday statement, but stopped short of explicitly threatening counter-tariffs. President Xi Jinping's government has in recent months been treading carefully with Washington, avoiding any retaliation to trade curbs that could escalate tensions.