Both Mexico and China announced retaliations to new tariffs imposed by U.S. President Donald Trump, according to the Associated Press.
Mexican President Claudia Sheinbaum said Tuesday that Mexico will respond to 25% tariffs imposed by the United States with its own tariffs on U.S. goods. Sheinbaum said she will announce the products Mexico will target on Sunday, perhaps indicating Mexico still hopes to de-escalate the trade war set off by Trump.
Canada, China and Mexico are the largest trading partners for Wisconsin businesses, according to the University of Wisconsin Madison Extension and the Wisconsin Economic Development Agency.
Canada accounts for almost one-third ($8.6 billion) all Wisconsin exports. Mexico accounts for an annual average of 10.9% over the past two decades. China is the third largest export partner with an annual average of about 6.2%.
China said it will respond to new U.S. tariffs by imposing additional tariffs of up to 15% on imports of key U.S. farm products, including chicken, pork, soy, and beef, and expanding controls on doing business with key U.S. companies.
The tariffs announced by the Commerce Ministry will take effect from March 10, though goods already in transit will be exempt until April 12. They follow U.S. President Donald Trump’s order to raise tariffs on imports of Chinese products to 20% across the board. Those took effect on Tuesday, along with the 25% tariffs on imports from Canada and Mexico.
China is a major importer of American farm products. Purchases dipped after Trump launched a trade war during his first term and then recovered. Now, imports of U.S.-grown chicken, wheat, corn, and cotton will face an extra 15% tariff, the Chinese ministry said. Tariffs on sorghum, soybeans, pork, beef, seafood, fruit, vegetables, and dairy products will be increased by 10%.
A survey by Wisconsin Manufacturers and Commerce in January showed support for tariffs on Chinese products in response to unfair trade practices, but 56 percent of those surveyed opposed tariffs on Canada and Mexico. The survey also showed that respondents expected tariffs to have a negative impact on their businesses.
