Here is a look at the nascent trade war:
Trump announced last weekend that he would slap tariffs on imports from China, Mexico and Canada in response to the “extraordinary threat” posed by illegal immigration and drugs.
On Tuesday, as promised, Chinese products were hit with 10 percent tariffs.
Beijing swiftly retaliated, with 15 percent duties on US coal and liquefied natural gas and 10 percent levies on crude oil, machinery, pickup trucks and vehicles such as sports cars with large-displacement engines.
China’s tariffs, however, “appear much less than proportional” as they target $14 billion worth of US goods while Trump’s measures hit $525 billion worth of Chinese products, according to Goldman Sachs.
“However, the combination of countermeasures suggests a more coordinated and comprehensive approach by Chinese policymakers,” an analyst at the US investment firm said.
They were referring to Beijing’s decisions to launch an antitrust probe on US tech giant Google and impose restrictions on exports of critical minerals.
China also added the US fashion group that owns Tommy Hilfiger and Calvin Klein to a list of “unreliable entities”.
Trump had already launched a trade war with China during his first term in office in 2017-2021.
Now all eyes are on whether Trump and Chinese President Xi Jinping will negotiate a settlement.
Trump had indicated that talks with Xi could take place early this week, but he then said Tuesday he was in “no rush” to speak with the Chinese leader.
The US leader had warned that he would impose 25-percent tariffs on Mexico and Canada, but both countries secured a one-month delay after 11th-hour talks with Trump.
He paused the measures after both countries vowed to step up measures to counter flows of the drug fentanyl and the crossing of undocumented migrants into the United States.
Trump’s threats angered the US neighbours.
Canadians booed the US national anthem at hockey and basketball games.
Ontario, Canada’s biggest province, announced plans to scrap a deal with Elon Musk’s Starlink internet satellite service and ban American companies from bidding for government contracts.
But the province paused its measures after Trump put off the tariffs.
Trump warned on Sunday that tariffs on EU products would come “pretty soon”, saying “it’s an atrocity what they’ve done” in terms of trade with the United States.
Trump imposed tariffs on EU steel and aluminium during his first term in office.
