US tariffs come into effect, as countries prepare to take countermeasures

US tariffs on Canada, Mexico and China took effect on Tuesday, despite many internal and external stakeholders, economists, trade bodies and business leaders highlighting their frustration at the Trump administration's decision. Now, the impacted nations are ready for retaliatory action.

In an attempt to sure up US manufacturing as well as to further consolidate border security, the US President signed an executive order on February 1 to impose a 25 percent tariff on goods imported from Mexico and Canada, and a 10 percent tariff on China. 

The tariffs on Canada and Mexico were then delayed by a month in order to facilitate further trade negotiations, though now that period has lapsed. Energy imports from Canada like oil and electricity are to be taxed at a lower 10 percent rate.

Canadian Foreign Affairs Minister Mélanie Joly said on Monday that Canada is ready to hit back at US President Donald Trump's tariffs right away, local media reported.

Joly said if the levies go into force, Ottawa will revive its previously announced plan for 25-percent retaliatory tariffs on 155 billion Canadian dollars ($107 billion) worth of American goods.

This is an existential threat to Canada, with thousands of jobs at stake, added Joly. However, she highlighted that Canada has done the work and that Canada is ready should the US decide to launch its trade war.

Mexican President Claudia Sheinbaum on Monday called for temperance, serenity and patience, while also reassuring the public that her administration has multiple backup plans in place should the tariffs be imposed.

Sheinbaum said that recent meetings between Mexican and US security and trade officials went very well. Mexico has prepared Plan A, Plan B, Plan C and Plan D, said the president, without providing further details.

Trump had previously agreed to delay the 25 percent tariff on Mexican goods for one month after Sheinbaum ordered the deployment of 10,000 National Guard troops to the US-Mexico border to curb drug trafficking and mass immigration.

China has also firmly opposed the recent decision by the US regarding the imposition of a 10 percent tariff, on top of the 10 percent announced in the February 1 executive order, on Chinese exports starting Tuesday. 

In response, China has lodged a lawsuit with the World Trade Organization (WTO) under the dispute settlement mechanism, and has announced its own additional tariffs on Tuesday, ranging from 10 percent to 15 percent, on certain US food and agricultural products.

With the US citing the issue of fentanyl as a pretext, the spokesperson of China's ministry of commerce highlighted that China has one of the strictest anti-drug polices in the world, adding that the unilateral tariffs applied by the US violate international trade rules. The spokesperson urged the US to view and handle issues objectively and return to dialogue.