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President Trump signed executive orders on Saturday imposing a 25% tax on imports from Canada and Mexico, and a 10% tariff on all goods from China. On social media, the White House said that the measure is, quote, "necessary to hold China, Mexico and Canada accountable for their promises to halt the flood of poisonous drugs into the United States." The announcement sparked fears of a trade war that could have widespread implications for the global economy. The tariffs are set to begin on Tuesday, but all three countries have been swift to respond as our correspondents report.
EYDER PERALTA, BYLINE: In Mexico, President Claudia Sheinbaum was speaking at an event when the news of tariffs broke.
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PRESIDENT CLAUDIA SHEINBAUM: (Speaking Spanish).
PERALTA: "When we negotiate with other countries," she said, "we'll do so with our heads held high."
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SHEINBAUM: (Speaking Spanish).
PERALTA: Shortly thereafter, Sheinbaum categorically denied the accusations made by the White House that the Mexican state had alliances with drug cartels. Sheinbaum said she had ordered her economic minister to launch retaliatory measures against the United States. Mexico has been warning that a tariff war between the two countries would have huge effects not just for American consumers, but also for American companies manufacturing in Mexico.
The largest exporter in Mexico, for example, is the American car company General Motors. Mexico is the No. 1 provider of cars and car parts for the United States. It's the largest provider of TV and computer screens, and 1 out of every 3 refrigerators in the U.S. comes from Mexico. Mexico's economy secretary, Marcelo Ebrard, said Americans could see a hike in prices in everything from avocados and beer to cars, trucks and medical equipment.
MARCELO EBRARD: (Speaking Spanish).
PERALTA: "The biggest impact," he said, "is that millions of American families will have to pay 25% more." Eyder Peralta, NPR News.
JOHN RUWITCH, BYLINE: China is in the middle of the Lunar New Year holiday, but the government issued coordinated statements from the Commerce Ministry and the Ministry of Foreign Affairs.
UNIDENTIFIED PERSON: (Non-English language spoken).
RUWITCH: The Commerce Ministry said China is strongly opposed to the tariffs, which are a serious violation of World Trade Organization rules. It said it would launch a legal challenge at the WTO. The Foreign Ministry, meanwhile, said China has been helping fight fentanyl by curbing the flow of precursor chemicals to drug cartels. But it said fentanyl was ultimately a U.S. problem, and the imposition of tariffs will inevitably undermine cooperation between China and the U.S. in fighting drugs. Both ministries threatened, quote, "corresponding countermeasures," although they did not give specifics.
Xu Bin is an economist at the China-Europe International Business School in Shanghai. He says that compared to the 25% imposed on Mexico and Canada, China's 10% tariffs are more symbolic than anything and may actually present an opportunity.
XU BIN: To see that Trump is attacking the allies and China may, you know, talk to those countries to form some kind of, you know, coalition to fight back.
RUWITCH: He also expects the new tariffs to spur discussions between Washington and Beijing, too. John Ruwitch, NPR News.
JACKIE NORTHAM, BYLINE: In Canada, reaction to President Trump slapping 25% tariffs on a range of Canadian products could be summed up at a National Hockey League game in Ottawa last night.
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MANDIA: (Singing) By the dawn's early light.
NORTHAM: The Canadian crowd booed loudly during the singing of "The Star-Spangled Banner." Later, during a televised address, Prime Minister Justin Trudeau made it clear Canada does not want a trade war with its neighbor and largest trading partner.
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PRIME MINISTER JUSTIN TRUDEAU: If President Trump wants to usher in a new golden age for the United States, the better path is to partner with Canada, not to punish us.
NORTHAM: Trudeau said Canada would retaliate by imposing a 25% levy on more than $100 billion of U.S. products, including clothing, lumber, beer and bourbon. The prime minister warned President Trump's tariffs will impact American jobs at auto assembly plants and elsewhere.
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TRUDEAU: They will raise costs for you.
NORTHAM: Trudeau said Canada has critical minerals and natural resources the U.S. needs. Roughly 60% of the oil the U.S. imports comes from Canada. And officials in Ottawa have warned Canada could limit those oil exports if the trade war between the two allies persists. Jackie Northam, NPR News. Transcript provided by NPR, Copyright NPR.
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