Yesterday, March 4, the 25% tax rate that the US imposed on Canada and Mexico officially took effect, as well as increasing the tax to 20% on imported goods from China.
According to Reuters, the tariffs were issued after the Trump administration concluded that the US's three largest trading partners were not doing enough to stop the flow of the addictive drug fentanyl into the US. Canada responded with a 25% tariff on $107 billion worth of US goods, divided into two rounds. Mexico also announced that it would take corresponding measures against the US.
Container trucks load into Oakland port in California, USA
Meanwhile, China responded by imposing an additional 10-15% tax on some agricultural products, food, etc. imported from the US, effective from March 10. Yesterday, China added 25 US companies to its export and investment restriction list for national security reasons, including 10 companies targeted for selling weapons to Taiwan. Chinese Foreign Ministry spokesman Lin Jian said Beijing would fight to the end if Washington was determined to launch a trade or tariff war.
Economic observers have warned that the tit-for-tat tariffs between the US and its trading partners could raise consumer prices and put pressure on growth and jobs. Asian stock markets fell between 1.5% and more than 2% on Friday after the US move, according to AFP. Similarly, major US stocks also fell sharply on March 3 after Mr. Trump confirmed the tariffs. Meanwhile, European defense stocks soared as the old continent planned to increase military spending related to Ukraine. Earlier this week, President Trump made remarks that added to market worries when he warned the leaders of China and Japan that the US could impose tariffs if these countries devalue their currencies to boost exports, putting US manufacturers at a disadvantage.
TSMC invests $100 billion in the US
On March 3, President Trump announced that Taiwanese chipmaker TSMC will invest at least $100 billion to build five advanced manufacturing plants in the US, according to AFP. Speaking alongside Mr. Trump, TSMC Chairman Wei Zhejia said the new announcement brings the company's total commitment to about $165 billion.
Source: https://thanhnien.vn/don-dap-dien-bien-chien-tranh-thue-quan-18525030423143733.htm
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