Trump to double tariffs on China to 20%, China vows to impose countermeasures

The U.S. will double tariffs on China from 10 per cent to 20 per cent, effective Mar. 4, 2025.

Additionally, the U.S. will move forward with steep tariffs on Canada and Mexico following an initial 30-day suspension.

In a press conference on Mar. 3 (U.S. time), President Donald Trump stated there was "no room left" for a deal to avoid imposing tariffs on the countries’ closest neighbours, according to The Guardian.

Under the new measures, all Mexican exports to the U.S. will face a 25 per cent levy, while most Canadian exports will also face a 25 per cent tariff.

Energy products from Canada will be subject to a 10 per cent duty.

China's response

In response, China’s Ministry of Commerce pledged countermeasures, asserting they were necessary to "safeguard its rights and interests."

China also criticised the U.S. for "shifting the blame" for its role in the fentanyl trade, using it as an excuse to impose new tariffs, according to The Wall Street Journal and The Guardian.

China has denied the accusations, and the state-backed Global Times speculated that American agricultural exports could be targeted in retaliation.

The countermeasures will likely include both tariffs and a series of non-tariff measures, and U.S. agricultural and food products will most likely be targeted, a spokesperson told the Chinese media.

"China hopes the U.S. will not repeat its mistakes and will promptly return to the right path of resolving differences through equitable dialogue.

If the US insists on proceeding on its own course, China will take all necessary countermeasures to safeguard its legitimate rights and interests."

Canada and Mexico's response

Mexico's president Claudia Sheinbaum is set to make a public response during her regular morning press conference on Mar. 4

"We have a plan B, C, D." Reuters reported her as saying.

Meanwhile, Ontario Premier Doug Ford told NBC that the U.S. tariffs and Canada's retaliation would be "an absolute disaster" for both countries.

"I don't want to respond but we will respond like they've never seen before," Ford said.

Canada will be imposing 25 per cent tariffs on C$155 billion (S$143 billion) worth of U.S. goods from Mar. 4 if the U.S. follows through with its proposed tariffs on Canadian goods, Prime Minister Justin Trudeau said on Mar. 3, according to CNBC.

Tariffs a powerful weapon: Trump

Although President Trump has recently acknowledged that higher tariffs could lead to increased prices in the U.S., he maintained that the cost would be "worth" it.

“Tariffs are easy, they’re fast, they’re efficient, and they bring fairness,” Trump said, describing it as “a powerful weapon” that other presidents had not used because “they were dishonest, stupid or paid off in some other form”.

The announcement of the tariffs shook the U.S. stock market, with the S&P 500 down 1.7 per cent, the Dow Jones industrial average down 1.5 per cent, and the Nasdaq dropping over 2.6 per cent.

Tariffs on overseas agricultural goods

On Mar. 3, Trump also announced potential tariffs on overseas agricultural goods and farm products, set to take effect on Apr. 2.

He shared the news on his social media Truth Social, urging U.S. farmers to focus on domestic sales.

“To the Great Farmers of the United States: Get ready to start making a lot of agricultural product to be sold INSIDE of the United States.

Tariffs will go on external product on April 2nd. Have fun!”

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Top photo from Donald J. Trump/Facebook and Canva