Trade war threatens: Trump raises tariffs on Canada, Mexico and China

Trade war threatens: Trump raises tariffs on Canada, Mexico and China

The US trade relationships are facing an explosive turn: President Donald Trump announced new import duties on goods from China, Canada and Mexico on Tuesday that have the potential to overthrow the economy into a violent conflict. As reports oe24 , the existing tariffs to Chinese goods are doubled from 10 to 20 percent, while tariffs from neighboring states are raised by tariffs of 25 percent. Trump justifies these drastic measures with the urge to stop illegal drug trafficking, especially the Smuggle of Fentanyl.

The immediate reaction of the affected countries does not long for itself: Canada under Prime Minister Justin Trudeau will also take American imports worth $ 20.7 billion with $ 25 percent. Further measures are to be followed, but are considered a possible violation of the free trade agreement between the three countries. Mexico's President Claudia Sheinbaum is also planning comprehensive countermeasures, which she will soon present, while China announced additional tariffs from 10 to 15 percent on March 10 on certain US imports. These start with food and agricultural products and overall lead to a potentially enormous trade conflict, as explained by rai news

market reactions and economic importance

The financial markets were very sensitive to Trump's decisions: the S&P 500 index lost 1.75 percent and the Nasdaq even 2.64 percent. These developments fear that the tensions grow to a comprehensive trade war that could destabilize the global markets. Experts warn urgently: "Donald Trump plays with a fire that could make the entire global economy blazing," said Thomas Gitzel, chief economist of VP Bank.