Trump Tariffs Trigger “Tit for Tat” Response

Trump tariffs have hit Canada, China, and Mexico with a wave of reciprocal tariffs set to hit all U.S. trading partners on April 2.

Rewind: Trump imposed a 10% tariff on Chinese imports in February, but doubled it to 20% earlier this week. On Tuesday, 25% tariffs went into effect for Canada and Mexico. 

Clapping back: Canadian Prime Minister Justin Trudeau announced a 25% retaliatory levy on $107B worth of U.S. imports, with tariffs on an additional $86.7B on U.S. goods coming in 21 days. Mexico says retaliatory tariffs will hit this weekend. 

Meanwhile, China retaliated on Tuesday with additional tariffs of 15% on U.S. chicken, wheat, corn, and cotton, and an extra 10% on U.S. soybeans, sorghum, pork, beef, aquatic products, fruits, vegetables, and dairy imports beginning March 10. 

From the press: “China on Tuesday suspended the soybean import qualifications from three U.S. exporters and halted the imports of U.S. lumber, increasing its retaliatory pressure against U.S. tariffs in the start of an all-out trade war.” — Reuters

Making it hurt: China added 10 more U.S. firms to its “unreliable entity list.” This keeps them from engaging in any China-related import or export activities or making new investments in the country. Another 15 U.S. companies were added to its “export control list.”

In Trump’s congressional address on Tuesday night, he said the American farmer might have “a little bit of an adjustment period” after the reciprocal tariffs go into effect April 2.

Is anyone happy? The American Soybean Association, American Seed Trade Association, Agricultural Retailers Association, and the Fertilizer Institute voiced disapproval for Trump’s tariffs even prior to his big speech. A few groups mentioned the tariffs on critical fertilizer imports from Canada will hurt the American farmer with elevated input costs.