The latest on Trump's tariffs
- President Donald Trump signed an executive order yesterday issuing tariffs on goods coming into the United States from Canada, Mexico and China. The order implemented a 25% tariff on Mexican and most Canadian goods while imposing a 10% tariff on Canadian energy products and Chinese goods.
- Trump said Americans could feel "some pain" after the tariffs take effect.
- Canada and Mexico hit back, with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum threatening retaliatory measures that included tariffs. Canada's retaliatory tariffs would begin Tuesday, the day U.S. tariffs on Canadian imports are scheduled to take effect. Sheinbaum said in a video message today that she could announce details of what she calls "Plan B" as soon as tomorrow.
- The Chinese Commerce Ministry responded by announcing that China would file a lawsuit with the World Trade Organization "and take necessary countermeasures to firmly safeguard its rights and interests."
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Asia-Pacific markets slide after Trump’s sweeping tariffs
Asia-Pacific markets traded lower Monday after Trump levied tariffs on Canada, Mexico and China over the weekend.
Australia’s S&P/ASX 200 dropped 1.61%.
Japan’s Nikkei 225 fell 1.99%, while the Topix lost 1.87%. South Korea’s Kospi dropped 2.52%, and the small-cap Kosdaq traded 2.79% lower.
Hong Kong’s Hang Seng Index dropped 1.23% at the open.
Tariffs take aim at trade loophole used by Chinese online retailers
Trump’s tariffs against China, Canada and Mexico target a trade provision that helped fuel the explosive growth of budget online retailers, including Temu and Shein.
Trump on Saturday signed executive orders imposing tariffs on the country’s top three trading partners. Goods imported from Canada and Mexico will be slapped with a 25% tariff, while goods from China will be charged a 10% tax. Energy resources from Canada will have a lower 10% tariff. The duties are expected to take effect Tuesday.
The orders against China, Canada and Mexico all halt a trade exemption, known as “de minimis,” which allows exporters to ship packages worth less than $800 into the United States duty free.
The de minimis provision has existed since the 1930s, but its use has come under increasing scrutiny in recent years. The Biden administration took steps in September to curb the “overuse and abuse” of de minimis, arguing it has helped Chinese e-commerce companies undercut competitors with lower prices. Officials have also argued that de minimis shipments are “subject to minimal documentation and inspection,” raising product safety concerns.
European Union says it would ‘respond firmly’ if Trump imposes tariffs affecting its members
The European Union said today it “regrets” the United States’ choice to impose tariffs on Canada, Mexico and China. It said it is not aware of additional tariffs imposed on E.U. products, but it said that if its members are faced with similar levies, it is ready to “respond firmly.”
“Our trade and investment relationship with the U.S. is the biggest in the world. There is a lot at stake,” a European Commission spokesperson said in a statement.
“The EU firmly believes that low tariffs drive growth and economic stability within a strong, rules-based trading system. However, the EU would respond firmly to any trading partner that unfairly or arbitrarily imposes tariffs on EU goods,” the spokesperson added.
Mitch McConnell: Tariffs will 'drive the cost of everything up'
Sen. Mitch McConnell, R-Ky., said in an interview that aired tonight that tariffs Trump launched at Canada and Mexico will "drive the cost of everything up."
McConnell, responding on CBS' "60 Minutes" to a question about levies on imports against U.S. allies, said tariffs would be "paid for by American consumers."
"I mean, why would you want to get in a fight with your allies over this?" he asked.
Canadian PM candidate calls tariffs an ‘act of economic warfare’
Canadian prime minister candidate Chrystia Freeland called Trump’s tariffs “a betrayal of America’s closest friend.”
Freeland, a former foreign minister who has negotiated with Trump, said the pretext of fentanyl to justify the tariffs is “ludicrous” and “utter madness.”
“Americans are going to be astonished by the Canadian response. We’re hurt for sure, because we’re your friends and neighbors. But most of all, we’re angry. And we are united and resolute,” Freeland told CNN’s Fareed Zakaria.
Freeland, seemingly Trudeau’s heir-apparent after he announced he will step down as his party’s leader and as prime minister, said the tariffs put Canada’s “very sovereignty” at stake.
“We have more leverage than Americans think. Canada is the largest market for the United States — larger than China, Japan, the U.K. and France, combined — and we know Americans. We know that for you guys, the customer is always right. We’re your biggest customer. It doesn’t make a lot of sense to be punching us in the face,” Freeland said.
“As the prime minister said, we do not want this conflict, but we’re not going to give in,” she added.
Trump says he will speak with Trudeau and 'Mexico tomorrow morning'
Trump told reporters tonight that he will be speaking with Trudeau and "Mexico tomorrow morning." He did not clarify whether he would be speaking with Sheinbaum or someone else from the Mexican government.
"I don't expect anything very dramatic. We put tariffs on, they owe us a lot of money, and I'm sure they're going to pay," he said.
Trudeau and Sheinbaum, both leaders of countries that are U.S. allies, have slammed Trump's tariffs.
Keep an eye on an upcoming USA vs. Canada hockey match as Trump imposes tariffs
Mark Feb. 15 on your calendars.
That Saturday evening, the United States and Canada will face off in a hockey match in Montreal that could be one of the most politically charged sporting events in years. It comes weeks after Trump imposed 25% tariffs on goods across the Canadian economy, which Canada followed with retaliatory tariffs of its own.
Hockey fans were already anticipating what is the marquee matchup of the "4 Nations Face-Off," a new international tournament launched by the NHL that features the United States, Canada, Finland and Sweden battling for on-ice supremacy. The tournament is set to be the first time the best players from each country will have participated in an international tournament in nearly a decade.
But with tensions between the United States and its northern neighbors rising, the prime-time matchup between two evenly matched challengers could take on new meaning.
Already, since Trump has announced the new tariffs, Canadian fans across the country have booed the singing of "The Star-Spangled Banner" ahead of sporting events yesterday. With Trump continuing to suggest the United States should annex Canada as a new state, the game, which will be nationally televised in both countries, provides a huge venue for Canadians to express their thoughts about the state of the relationship.
Trump accuses Canada, a close ally, of being 'abusive' of the U.S.
Trump accused Canada, a close U.S. ally, of being "very abusive of the United States for many years."
"I love the people of Canada. I disagree with the leadership of Canada, and something is going to happen there," Trump told reporters today before he boarded Marine One to head to the White House. "But if they want to play the game, I don't mind. We can play the game all they want."
Trudeau earlier announced retaliatory tariffs on U.S. products in response to Trump's imposing tariffs on Canadian imports.
Trudeau says he and Sheinbaum 'agreed to remain in close contact' amid Trump's tariffs
Trudeau's office said in a news release today that he and Sheinbaum spoke yesterday about "the imposition of U.S. tariffs on both countries, as well as their respective efforts to enhance border security and combat the production and distribution of illegal drugs."
They “agreed to remain in close contact,” the release said.
Trudeau and Sheinbaum also laid out their countries' "deep people-to-people ties, the strong trade and investment relationship between Canada and Mexico, and the importance of preserving North American competitiveness and prosperity."
Both leaders have expressed deep opposition to Trump’s decision to impose tariffs on the two close U.S. allies.
Stock futures drop after Trump signs tariffs into effect
Futures, which indicate where the stock market will open tomorrow morning, dropped as trading began at 6 p.m. ET.
Dow Jones Industrial Average futures slid more than 500 points. The S&P 500 was set for a drop of more than 1.8%, and Nasdaq futures fell by nearly 2.8%.
With China, Mexico and Canada as top U.S. trading partners whose economies are highly intertwined with the United States’, markets are likely to be rattled by aggressive tariffs, such as those Trump signed yesterday. Oil prices also rose, which is likely to stoke concerns among investors about prices at the gas pump.