China and Canada ride while Trump’s commercial prices take effect: NPR

China and Canada announced reprisal measures on Tuesday after the American rates entered into force, increasing trade tensions and rattling on the world markets.

President Trump’s new prices include a 25% levy on most imports from Canada and Mexico, with an additional 10% tariff on Canadian energy exports. The prices on Chinese products increased from 10% to 20%.

Beijing responded by slapping additional tariffs of 10 to 15% on a variety of American agricultural imports, including chicken, pork, soybeans and beef, from next week, the Chinese finance ministry announced.

Canadian Prime Minister Justin Trudeau said Ottawa would impose immediate 25% tariffs at more than $ 20 billion for American imports. Prices on an additional $ 86 billion in products will take effect in 21 days.

“Our prices will remain in place until the American commercial action is withdrawn,” said Trudeau, adding that his government examined non-pricing measures if the United States did not overthrow the course.

Trump defended the prices, arguing that they would punish Canada and Mexico – the two largest trading partners in the United States – for fentanyl trafficking. He also said that this decision would encourage car manufacturers and other companies to move their production in the United States.

“I would just say that to people in Canada or Mexico: if they are going to build car factories, the people who make them, it’s better to build here, because we have the market where they sell the most,” Trump told the White House.

The markets fall within the fears of a trade war

Asian markets have dropped shortly after the prices are in force. The Japan Nikkei index fell by more than 2%, while Hang Seng of Hong Kong fell 1.5%.

In Wall Street, American actions closed sharply later Monday before the price of the price. The S&P 500 fell by 1.8%, the NASDAQ dropped by 2.6%and the DOW decreased by 1.5%.

The market slide follows weeks of speculation on the question of whether Trump would follow the prices. Trump initially declared that the prices would start on February 1, but then gave leaders of the two countries a month to show that they slowed down illegal immigration to the United States as well as drug trafficking.

Last week, he briefly declared that he would repel the prices until April 2 – then a day later, said that March 4 was the deadline.

During the weekend, trade secretary Howard Lunick said that the price rate decision was still underway, telling Fox News that the two nations had “done reasonable work” to brake migration but not fentanyl.

“He thinks in a way at the moment how he wants to play with Mexico and Canada, and it’s a fluid situation,” said Libnick on Sunday.

Trump said that there was no room for maneuver for discussions

During an event with the CEO of Taiwan Semiconductor Manufacturing CO (TSMC) CC Wei in the White House on Monday, Trump said that 25% prices would continue.

When asked if there was a room for maneuver so that the two countries negotiate the rate, Trump said: “There is no room left for Mexico or Canada.”

“The prices, they are all ready, they take effect tomorrow,” he said.

TSMC announced on Monday that it planned to spend $ 100 billion in semiconductor factories in Arizona, bringing the company’s total investments in the United States to around $ 165 billion.

Lutnick noted that TSMC had received a subsidy of $ 6 billion from the flea law which prompted its plans to spend $ 65 billion on Arizona – but now spends $ 100 billion due to Trump’s threat to put prices on semiconductor imports.