Donald Trump imposes duty for Canada, Mexico and China. They fight back – key takeaways | World News

US President Donald Trump announced sweeping new tariffs on imports from Mexico and China, a step that has triggered sharp reactions from global leaders and financial markets. The tariffs, as Trump say are aimed at protecting American workers and industries, have given rise to fear of economic retaliation from the countries affected.
Stock markets responded with significant falls, while business leaders warned of rising costs for consumers. Trump remains defiantly and insists that “pain” will be worth it in the long run.

While tariffs are placed as a means of protecting US industries and workers, they have raised concerns about potential economic retaliation, rising consumer prices and the long -term impact on global trade.

Here are 10 important takeaways from the latest development:

Canada, Mexico, China announces countermeasures

Retruction has already begun, with Canada, Mexico and China, all of which advertise countermeasures against US goods. Mexico has targeted American-made steel, bourbon and dairy products.
From February 4, Canada imposes $ 25 billion on $ 30 billion of US imports. The tariffs apply to goods from the United States with specific guidelines described in accordance with the CUSMA rules.

Trump is talking to Trudeau

In response to customs, Trump held a call with Canadian Prime Minister Justin Trudeau. The conversation allegedly focused on potential exceptions to Canada considering its economic ties to the United States. However, no insurance was given. Trudeau expressed concern about how these tariffs could affect the North American trade and warned that Canada might have to answer. Trump, in turn, repeated his attitude that customs are needed to fight what he called “unreasonable” commercial practice.

Stock markets are slipping

After the announcement, global stock markets experienced a sharp decline in which US indices fell significantly. Investors are concerned about the wider economic impact, in fear that a trade war could slow down global growth. Dow Jones Industrial Average Falling, while European and Asian markets also got a hit. Analysts suggest that companies that are very dependent on imports liked the most, leading to loss of jobs and increased consumer prices.
Indian Benchmark indexes, Sensex and Nifty, threw themselves in early trade Monday after falling in Asian markets in the midst of concern about Trump’s potential tariffs for some of its trading partners. The 30-part BSE Sensex dropped 731.91 points to 76,774.05, while NSE NIFTY fell 243 points and reached 23,239.15.
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What will be more expensive?

A wide range of products are expected to see price increases due to tariffs. Consumer electronics, vehicles and agricultural products top the list. Items obtained from China, such as smartphones, laptops and household appliances, could see significant price increases. Similarly, Mexican imports, including cars and foods like avocado, are likely to become more expensive. Retailers have warned that these tariffs will eventually be transferred to consumers, leading to higher costs for everyday goods.
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Peso, Yuan Canadian Dollar is weakened against USD

The dollar index rose 0.11% to 109.65 and reached a three -week height. Tariff news caused traders to reduce expectations of cuts in the Federal Reserve Rate, which is now priced on only 41 basic points to ease this year. The US dollar rose 0.7% to 7,2552 yuan, while the Mexican peso rose 2.7% to 21.40. The Canadian dollar weakened 1.4%and the euro fell 2.3%. Cryptocurrencies fell where Bitcoin fell 4.4% and ether dropped 15%.

‘Pain will be worth it’: Trump

In a statement, Trump acknowledged that customs could cause pain in the short term, but claimed they were needed to ensure long -term economic benefits. “Will there be some pain? Yes, maybe (and maybe not!)” Trump said in a post. “But we will do America well again, and it will all be worth the price to be paid,” the post added.

Trump has framed tariffs as part of his wider efforts to reduce America’s trade deficit and bring back production jobs. He has called on the companies to move production back to US soil to avoid the extra costs.

US Manufacturers Raising Concerns

American manufacturers are among the hardest affected by the tariffs, especially those that depend on imported materials from Mexico and China. Car manufacturers and electronics companies have warned that the extra costs can force them to cut jobs or move production abroad. Business groups have called on the Trump administration to consider and claim that although customs can offer temporary protection, they could weaken the wider economy in the long run. Many industrial leaders have called for negotiations rather than one -sided action.

EU next? Britain spared?

On Sunday, President Donald Trump suggested that he would not immediately impose on Britain’s tariffs, though he suggested that the European Union could face tariffs similar to those in Canada, Mexico and China. Trump has waged a trade war for the purpose of tackling migration and drug problems and tackling trade deficits. He criticized the EU for its $ 300 billion trade surplus with the United States and pointed out the lack of mutual trade in cars and agricultural products. Trump indicated a potential decision with the United Kingdom and praised Prime Minister Keir Stormer and their productive discussions about the balancing of trade.

Business groups call for cancellation

Larger business organizations, including the American Chamber of Commerce, strongly against customs. They claim that protectionist policies could strike back, leading to higher costs and financial instability. Some trade associations have suggested that tariffs could prevent growth and force companies to cut. Economists have pointed out that although the strategy may appeal to Trump’s base, it could alienate allies and harm America’s global economic status. There is growing pressure from business leaders for administration to pursue negotiations instead.

What happens next?

Some analysts believe that negotiations between the United States and its trading partners can lead to changes or exceptions. Others fear a prolonged trading van that can interfere with the global markets for years. Trump has stated that he is willing to negotiate, but has also threatened additional tariffs if China and Mexico do not comply with us requirements.
(With input from agencies)