Canada and China retaliate after Trump's tariffs take effect

President Donald Trump spoke in the Roosevelt Room of the White House on March 3, 2025, announcing that Taiwan Semiconductor Manufacturing Company (TSMC) will invest $100 billion in new manufacturing facilities in the United States.

The announcement came just hours before new U.S. tariffs took effect, triggering swift retaliation from China and Canada. The tariffs include a 25% levy on most imports from Canada and Mexico, along with an additional 10% tariff on Canadian energy exports. Tariffs on Chinese goods were also raised from 10% to 20%.

In response, Beijing announced additional tariffs of 10-15% on key U.S. agricultural imports, including chicken, pork, soy, and beef, set to take effect next week. Meanwhile, Canadian Prime Minister Justin Trudeau said Ottawa would impose immediate 25% tariffs on over $20 billion worth of U.S. imports, with further tariffs on $86 billion in goods set to follow in 21 days.

“Our tariffs will remain in place until the U.S. trade action is withdrawn,” Trudeau stated, adding that Canada is considering additional non-tariff measures if the U.S. does not reverse course.

The escalating trade dispute has sent shockwaves through global markets, raising concerns about further economic fallout.