Trump's tariff war: Which nations are retaliating, and which aren't?
What's the story
US President Donald Trump has made tariffs a centerpiece of his economic strategy. He believes such measures would reduce the US trade deficit, increase domestic manufacturing and address what he sees as unfair trade practices from other countries. Since the start of his second term, Trump has imposed new tariffs on major trading partners including China, Canada, Mexico and the European Union (EU) while announcing reciprocal tariffs against nations that impose trade barriers on US goods.
Trade measures
Trump's tariffs on Canada and Mexico
On 4 March, the Trump administration slapped a 25% import tariff on Canadian and Mexican goods, except energy products and potash, which received a reduced 10% tariff. The next day, it announced a temporary suspension of tariffs on automobiles that are eligible for duty-free trade under the US-Mexico-Canada Agreement (USMCA). This exemption was extended to all USMCA-compliant goods, but not to those that don't meet USMCA standards.
Retaliation
Canada's response to Trump's tariffs
Canada, initially planning retaliatory measures worth $87 billion, held back after some exemptions were announced, but went ahead with a separate $21 billion tariff package on US fruits and vegetables, appliances, and alcoholic beverages. On Wednesday, it also announced it will levy 25% tariffs on more than $20 billion in US goods in response to the Trump administration's steel and aluminum tariffs. Ontario also imposed a 25% surcharge on electricity exports while some provinces stopped imports of US alcoholic drinks.
Trade escalation
China's response to Trump's tariffs
China has been a major target of Trump's trade policies. After the US slapped an additional 10% tariff on Chinese goods on February 3, China retaliated with a 15% tariff on US coal and liquefied natural gas, 10% tariff on crude oil and agricultural machinery. Trump further escalated the trade war by increasing tariffs on Chinese goods by another 10%. Beijing retaliated with its own additional tariffs and restricted access for 15 American companies to its export market.
Trade retaliation
EU's response to Trump's tariffs
The European Union (EU) has so far escaped a fresh round of tariffs, though Trump has threatened a 25% levy on EU goods. In retaliation, the EU announced €26 billion ($28 billion) worth of retaliatory tariffs, effective from April 1-13. Tariffs will be imposed on a range of US goods from boats, bourbon, motorbikes to steel and aluminum products.
Trade stance
India's position amid Trump's tariff war
India has also been dragged into the tariff disputes. Trump has consistently attacked India's trade practices, calling its tariffs "massive." While he claimed India has agreed to "cut their tariffs way down," New Delhi has denied any such commitment. PM Narendra Modi said US and India will work toward "mutually beneficial trade agreement" but didn't confirm immediate tariff reductions.