China to challenge US tariffs at WTO amid Trump’s 10% tariff on Chinese goods

US President Donald Trump has ordered 25% tariffs on Canadian and Mexican imports, along with a 10% tariff on goods from China. These tariffs, set to take effect on Tuesday, will reportedly remain in place until the national emergency surrounding fentanyl and illegal immigration is resolved.

The move has sparked widespread reaction, with various stakeholders expressing concerns about the potential impact on trade relationships and the economy.

Reactions from affected countries:

– Canada: Prime Minister Justin Trudeau has announced retaliatory measures, imposing 25% tariffs on various US goods.
– Mexico: President Claudia Sheinbaum has ordered retaliatory tariffs and other non-tariff measures, calling for dialogue with the US.
– China: The Chinese Foreign Ministry has vowed to take “necessary countermeasures” against the US tariffs, stating that “fentanyl is America’s problem” and emphasizing that “there are no winners in trade wars.”

Industry concerns:

The American Automotive Policy Council, representing Ford Motor, General Motors, and Stellantis, has expressed concerns that the tariffs will undermine the competitiveness of US automakers and stymie investment in the American workforce.

Economists have warned that these tariffs could trigger a new trade war, potentially slowing global economic growth and fuelling inflation.

(with inputs from Reuters)