Trade war escalates: China and Mexico announce countermeasures!

China is reacting to the latest US tariffs by announcing corresponding countermeasures. This was confirmed by the Chinese Ministry of Commerce, which also plans to file a complaint with the World Trade Organization (WTO). The US punitive tariffs are criticized as a serious violation of WTO rules. However, it remains unclear whether Chinese responses will include counter-tariffs.

The US government under President Donald Trump has already introduced tariffs on goods from Canada, Mexico and China. These include 10 percent on all imports from China, while tariffs of 25 percent are imposed on imports from Mexico and Canada. In addition, 10 percent was applied to energy imports from Canada.

Counter tariffs from Mexico and Canada

Mexican President Claudia Sheinbaum has also announced countermeasures and instructed Economy Minister Marcelo Ebrard to develop a plan for counter-tariffs. Canada also plans to impose 25 percent tariffs on U.S. goods, worth a total of $155 billion, starting Tuesday. In addition, Canada is considering action in other trade areas, particularly those related to critical minerals.

In connection with these developments, the US government has also imposed new tariffs on Chinese imports. In response, the Chinese Ministry of Commerce has announced 25 percent taxes on US imports worth $16 billion. These measures take effect on August 23 and affect 333 US goods, including diesel, coal, steel products and medical technology.

The ongoing tensions in the trade dispute between the USA and China show no signs of de-escalation. President Trump had already announced in mid-July that he would impose tariffs on all Chinese imports, while China has criticized the US tariffs as damaging to mutual trade. The situation remains tense, especially after US tariffs on $34 billion in Chinese imports affecting household appliances and electronics have been in place since July 6.