The logistics industry braced itself for the fallout of a trade war launched this by US president Donald Trump against America’s biggest trading partners - Mexico, Canada and China.
On Tuesday (March 3) the Trump administration made good on their threat to impose a 25% tariff on imports from Mexico and Canada. At the same time, the US raised tariffs on Chinese imports by 10%, doubling the duty charged on Chinese goods, which were already subject to a 10% tariff that went into effect early last month.
The US actions immediately provoked counter-measures with the outgoing Canadian Prime Minister Justin Trudeau calling Trump’s actions “very dump” and imposing immediate 25% tariffs on C$30 billion worth of US imports, with the option to target another C$125 billion worth in 21 days' time.
‘No justification’
"There is absolutely no justification or need whatsoever for these tariffs today," said Trudeau, adding that Canada would challenge the tariff measures through the World Trade Organization and through the US-Mexico-Canada trade agreement.
Mexican president Claudia Sheinbaum said it would announce its own countermeasures later this week, which would include tariff and non-tariff actions. Meanwhile, China’s finance ministry announced countermeasures including duties on a variety of US agricultural imports that will come into effect March 10. Lin Jian, a spokesperson for China’s foreign ministry, said in press conference that the country was ready to fight in “a tariff war, a trade war or any other type of war” against the US.
Impact on supply chains
