Trade war: Trump’s tariffs trigger retaliation from Mexico, Canada and China

Trump’s tariffs have sparked controversy and triggered a trade war involving China, Canada and Mexico. On February 1, 2025, President Donald Trump signed executive orders establishing tariffs of 25% on imports from Canada and Mexico, and 10% on Chinese products.

In response, Mexico announced tariff and non-tariff measures against the United States as of March 9, calling the U.S. decision “offensive, defamatory and unsubstantiated”. Canada has also expressed its displeasure and is evaluating possible retaliation. For its part, China has responded with additional tariffs on U.S. products.

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Financial markets have reacted negatively to Trump’s tariffs, registering significant declines in the main stock market indexes. In addition, an increase in consumer prices in the United States is anticipated.

In his speech before Congress, Trump acknowledged that the tariffs cause disruptions, but assured that these would be temporary and that the measures seek to “make America rich and great again”.

Mexico responds to Trump’s tariffs

The U.S. president’s recent tariff measures have generated a response from Mexico. The government, led by President Claudia Sheinbaum, has announced the implementation of tariff and non-tariff measures against the United States as of March 9, calling Trump’s decision “offensive, defamatory and unsubstantiated.” Sheinbaum emphasized that such actions will harm citizens and businesses in both countries, and stressed the importance of cooperation without subordination.

The reaction in Mexico has been one of national unity. Political parties, including the opposition, businessmen and governors, have rejected Trump’s tariffs. Morena has confirmed its support and both tariff and non-tariff measures are being prepared.

The Mexican Confederation of Employers (Coparmex) suggests using mechanisms of the Mexico-United States-Canada Agreement (TMEC) to confront the decision, and has called for market diversification to be encouraged.

Canada imposes retaliatory tariffs in the millions

Canadian Prime Minister Justin Trudeau called Trump’s tariffs “foolish” and accused the United States of starting a trade war. In response, Canada implemented tariffs on CAD $30 billion in U.S. imports, with plans to expand these measures in the coming weeks.

In addition, Canada filed a formal complaint against the United States with the World Trade Organization (WTO), arguing that Trump’s tariffs violate international trade rules.

Domestically, Canadians are canceling trips to the U.S., boycotting U.S. products and supporting restrictions on U.S. businesses in Canada. For example, the province of Ontario cancelled a significant contract with Starlink, Elon Musk’s company.

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China responds to the trade war

Following the imposition of an additional 20% tariff on Chinese products, Beijing reacted forcefully, imposing tariffs of up to 15% on various U.S. products, including coal, liquefied natural gas and crude oil, escalating the trade dispute between the two nations.

The Chinese government expressed its displeasure and determination. During the National People’s Congress, Chinese leaders expressed their readiness for a “trade and real war” with the United States, emphasizing their readiness to face economic and military challenges.

China has outlined plans to mitigate the impact of U.S. measures and strengthen its global position. The Chinese government has emphasized the importance of technological innovation and self-sufficiency, investing in sectors such as artificial intelligence, robotics and biotechnology to reduce its dependence on foreign technologies.

In addition, a 7.2% increase in military spending has been announced, reflecting China’s intention to strengthen its defensive capabilities amid rising tensions with the United States.