Mexican President Claudia Sheinbaum said she will announce retaliatory tariffs on Sunday in response to President Trump implementing 25 percent tariffs on goods from Mexico.
She announced at her daily press conference Tuesday, the day the tariffs went into effect, that she will convene her supporters Sunday in Zócalo, in Mexico City, to announce her plan, Bloomberg reported. She said her goal isn’t to start “economic confrontation” and that it’s “inconceivable not to think of the damage this will cause to U.S. citizens and companies.”
A trade war kicked off Tuesday, when Trump’s new tariffs on Canadian, Mexican and Chinese imports were imposed, and those countries quickly moved to retaliate.
Trump imposed the 25 percent tariffs on most imports from the nation’s northern and southern neighbors after he had delayed implementation by a month as the result of negotiations with Sheinbaum and Canadian Prime Minister Justin Trudeau. Both countries had agreed at the time to more measures to secure their borders with the U.S., but Trump said Monday that there was no room for more dealmaking.
Trump also imposed a new 10 percent tariff on imports from China.
Mexico’s peso dipped 1.5 percent against the U.S. dollar while Sheinbaum announced she would be implementing retaliatory tariffs, Bloomberg reported.
Just after midnight, Canada hit the U.S. with a tariff on $30 billion in goods. Trudeau said in a statement late Monday said “tariffs will remain in place until the U.S. trade action is withdrawn.”
Meanwhile, China said Tuesday it would impose 15 percent tariffs on imports of chicken, wheat, corn and cotton from the U.S., as well as 10 percent tariffs on imports of sorghum, soybeans, pork, beef, seafoods, fruits vegetables and dairy products, according to The Associated Press.
The S&P 500 dipped by 1.76 percent Monday, the biggest loss since December last year. The Dow Jones also fell by nearly 650 points. The Nasdaq Composite was down 2.64 percent as Nvidia stock dropped by nearly 9 percent.
