China will sue the US at the WTO, Canada launches retaliatory tariffs against Washington

China's Ministry of Commerce announced on February 2 that it would file a complaint with the World Trade Organization (WTO) against the 10% tariff that US President Donald Trump recently imposed on all Chinese goods. The agency stressed that it "will take corresponding countermeasures to protect national rights and interests."

Beijing criticized Washington for unilaterally imposing tariffs and seriously violating WTO rules. This action "does not help solve the US's internal challenges, but harms US-China economic and trade cooperation," according to a statement from China's Ministry of Commerce.

China called on the US to recognize and address its internal challenges, including the fentanyl crisis, with objectivity and reason, "instead of using coercive measures such as imposing tariffs on other countries." Beijing said Washington should "correct its mistakes and compromise," engage in frank dialogue, strengthen cooperation, and manage disagreements on the basis of equality, mutual respect, and mutual benefit.

Canadian Prime Minister Justin Trudeau announced that he would impose a 25% tariff on $106.5 billion worth of US goods, after President Trump imposed similar tariffs on most goods from the neighboring country.

On the morning of February 2 (Vietnam time), Mr. Trudeau announced a plan to impose retaliatory tariffs on the US in two phases, with the total value of affected US goods being about CAD 155 billion (more than USD 106.5 billion). In phase 1, the 25% tariff will affect USD 20.5 billion of US goods exported to Canada starting on February 4. Phase 2 will be implemented in 21 days, affecting about USD 86 billion of US goods.

The first items to be hit with tariffs include clothing, shoes, perfume, beer, wine and bourbon, and fruit and fruit juice, including orange juice from Florida, where Mr. Trump lived before entering the White House. Canada will also expand its target to include sporting goods, household goods and furniture.

Ottawa is considering additional non-tariff measures, such as restricting exports of critical minerals and energy products to the United States and blocking American companies from bidding on Canadian government contracts.

Thủ tướng Canada Justine Trudeau (giữa) thông báo lệnh áp thuế trả đũa Mỹ vào ngày 1/2 tại Ottawa. Ảnh: AP — Canadian Prime Minister Justin Trudeau (center) announced the retaliatory tariffs against the US on February 1 (local time) in Ottawa. Photo: AP

Prime Minister Trudeau accused US President Donald Trump's previous tax decree of "a plot to destroy the Canadian economy", violating the free trade agreement that the US - Canada - Mexico signed during Trump's first term, emphasizing that his country "will not stand still and take the hit".

President Trump "should have treated our partners well instead of punishing them" if he truly wanted to lead the US into a "golden era" as promised in his inauguration statement, Mr. Trudeau commented. The Canadian Prime Minister also sent a message to the American people, warning that President Trump's tariff decree would cause consequences for the American people.

In 2023, trade in goods and services between the United States and Canada will reach $923 billion. The United States will export $441 billion, while importing $482 billion.

Meanwhile,President of MexicoClaudia Sheinbaum has asked the country’s Economy Minister to implement a “Plan B,” which includes both tariff and non-tariff measures to protect the country’s interests immediately after President Trump announced tariffs on imports from Mexico. However, the leader also emphasized that the Mexican government wants to seek cooperation and dialogue instead of confrontation with its neighbor.

Previously, on February 1 (US time), President Trump signed an order to impose tariffs on Canada, Mexico and China. This decree took effect from 0:01 on February 4 (12:01 on February 5, Vietnam time).

Accordingly, energy imports from Canada will be subject to a 10% tax, while those from Mexico will still be subject to a 25% tax. Almost all other goods from Mexico and Canada will be subject to a 25% tax, and all Chinese goods will be subject to an additional 10% tax.