Anastasia Gorbacheva12:04, 04.03.25

The US President’s decision will result in additional costs for American households amounting to up to $2,000.

President Donald Trump has imposed massive tariffs on Canadian and Mexican imports and doubled tariffs on China. Countermeasures have quickly followed, threatening to plunge the global economy into a trade war.

Bloomberg reports that the new US tariffs affect approximately $1.5 trillion in annual imports. The move signals that the Republican president intends to use import duties to generate new revenue and create jobs in domestic manufacturing.

The tariffs bring U.S. import fees to their highest average since 1943, but will cost U.S. households up to $2,000 in additional spending, according to the Yale Budget Lab. They will also mean a significant slowdown in U.S. economic growth, especially if other countries retaliate.

The Canadian government has announced that it will impose a massive round of counter-tariffs on American-made products. The first round will see a 25% tariff on about $20.6 billion worth of American exports, which will go into effect at the same time as the American tariffs. A second round will be imposed on $125 billion worth of Canadian goods over three weeks, including items such as cars, trucks, steel and aluminum.

The New York Times reports  that China’s Finance Ministry has imposed a 15% tariff on imports of American chicken, wheat, corn, and cotton, and a 10% tariff on other food products, from soybeans to dairy products. In addition, the Commerce Department said that 15 American companies will be able to buy products from China only with special permission, including Skydio, the largest American drone manufacturer and supplier to the military and emergency services in the United States.

National People’s Congress spokesman Lu Qinjian condemned Washington for violating World Trade Organization free trade rules.

It is worth noting that China is a major overseas market for American farmers, exerting a significant influence on prices and demand in Midwestern commodity markets.

By targeting food imports, Beijing has repeated its response to the tariffs imposed by Trump during his first term. In 2018, China imposed duties on U.S. soybeans and shifted much of its purchases to Brazil. But the strategy backfired.

But China has a potential trade weapon that goes beyond food tariffs. In early February, Beijing imposed restrictions on exports to the U.S. of some key minerals used in making semiconductors and other technology products.

Beijing may make it even harder for American companies to do business in China, but it could also hurt foreign investment. In addition to effectively barring 15 companies from buying Chinese goods, China’s Commerce Ministry on March 4 added 10 more American companies to what it calls an “unreliable entity list,” barring them from doing business in China.

Many of the companies China has fined are military contractors. But the Commerce Department has also blocked imports from biotech company Illumina, accusing the company of violating market rules and discriminating against Chinese companies.

A spokesman for China’s National People’s Congress signaled his country’s new strategy for Trump’s tariffs, calling for closer trade relations with Europe. But Europe has its own trade disputes with China, particularly over electric vehicles.

As a result of Trump’s actions, average tariffs on Chinese imports have risen to 39% this year, up from just 3% before he took office in 2017. 

(C)UNIAN 2025