Tariff War: Canada, Mexico Agree To Appease Trump; China Strikes Back

U.S. President Donald Trump has decided to delay a 25% tariff on Canada and Mexico after last-minute deals with their leaders. However, a proposed 10% tariff on China took effect after the deadline passed on Tuesday.

In a final-hour call, Canadian Prime Minister Justin Trudeau agreed to address Trump’s key concerns, including migration, border security, and the flow of fentanyl. Meanwhile, Mexican President Claudia Sheinbaum reached an agreement with Trump to deploy more troops along the U.S.-Mexico border to curb illegal migration. In return, Trump pledged to take steps to limit gun trafficking into Mexico. The Republican President has agreed to hold-off the tariffs war with neighbours for 30 days.

According to a White House statement cited by the Associated Press, Trump is expected to speak with Chinese President Xi Jinping as soon as this week, raising hopes of a potential deal to prevent a broader trade war.

China’s Countermeasures on US Tariffs 

China has responded to President Donald Trump’s tariffs with new duties on multiple US imports and an antitrust investigation into Google. 

Beijing announced a 15% tariff on coal and liquefied natural gas and a 10% tariff on crude oil, agricultural machinery, and large-engine cars from the U.S. These tariffs will take effect next Monday. 

This is not the first time both countries are engaged in a trade war, in 2018, Trump had raised tariffs on Chinese goods prompting quick retaliation from China. 

'No Winner In Trade War'

China has criticized the U.S. over tariffs imposed by President Donald Trump, warning that Beijing "may be forced to take countermeasures." It also emphasized that there is "no winner in a trade war."

“We are firmly opposed to this unwarranted increase and we do believe that this is in violation of the WTO (World Trade Organization) rules,” said China’s Permanent Representative to the UN, Ambassador Fu Cong.

Fu made the remarks at a press conference on Monday, February 3, 2025. The briefing came as China took over the rotating presidency of the 15-member UN Security Council for February.