Trump has also hit China with a percent tariff in addition to levies already in place. A fervent supporter of tariffs, Trump had always maintained that their impact would be borne by foreign exporters, without being passed on to American consumers, contradicting the opinion of a broad range of experts.
China, Mexico and Canada are the top three US trade partners and all have vowed to retaliate when the tariffs take effect Tuesday. Yes, maybe and maybe not! Seeking to limit a spike in fuel prices, Trump has put the levy on energy imports from Canada at only 10 percent.
But on Sunday he also expressed general outrage at trade deficits, which he has long viewed as signs of unfair treatment against the United States. While some economies believe the levies are likely to be temporary, the outlook is unclear because the White House set very general conditions for their removal.
A White House fact sheet gave no details on what the three countries would need to do to win a reprieve. Trump vowed to keep them in place until what he described as a national emergency over fentanyl, a deadly opioid, and illegal immigration to the United States ends. China left the door open for talks with the United States. Its sharpest pushback was over fentanyl. Canadian backlash was swift, with video posted to social media showing fans at a Toronto Raptors game Sunday booing during the US national anthem.
Canada said on Sunday it will take legal action under the relevant international bodies to challenge the tariffs. Canadian officials said they were preparing measures to help business who might be hurt by the trade war. Leaders of several Canadian provinces have already announced retaliatory actions as well, such as the immediate halt of US liquor purchases. The White House has not publicly announced what actions could end the tariffs.
