Trump's first trade war begins as China tariffs come into effect and Beijing hits back: Live updates
China has announced a package of tariffs on a range of American products in retaliation against a 10 per cent tariff on Chinese imports imposed by President Donald Trump.
It comes after Mr Trump agreed to suspend his aggressive tariff hike against Mexico and Canada by one month after speaking with his counterparts in both nations, but the threatened Chinese tariffs went ahead at 12.01am Eastern Time Tuesday.
Regarding Mexico, Trump wrote on Truth Social that he had had a “very friendly” conversation with president Claudia Sheinbaum and that the soldiers “will be specifically designated to stop the flow of fentanyl, and illegal migrants into our Country”.
As for Canada, Trump said the country agreed to appoint a “fentanyl czar” and signed a new intelligence directive on organized crime and fentanyl backed by $200 million.
The deals temporarily avert what is projected to be a costly trade war between the US and its most immediate neighbours.
As markets weighed the risk, congressional Democrats protested outside the headquarters of the U.S. Agency for International Development, which the Trump administration has targeted for major cuts and a potential full shutdown.
