China will challenge US tariffs through the World Trade Organization, the Chinese commerce ministry said on Sunday (Feb 2).
The imposition of tariffs by the US "seriously violates" WTO rules, the ministry said in a statement, urging the US to "engage in frank dialogue and strengthen cooperation".
US President Donald Trump on Saturday ordered 25 per cent tariffs on Canadian and Mexican imports and 10 per cent on goods from China starting on Tuesday, risking a new trade war that economists said could slow global growth and reignite inflation.
China said it "firmly opposes" the new tariffs imposed on Beijing by Trump, vowing to take "corresponding countermeasures to resolutely safeguard our own rights and interests".
In its statement on Sunday, China's commerce ministry also slammed Washington's "erroneous practices", saying Beijing was "strongly dissatisfied with this and firmly opposes it".
It added that the duties were "not only unhelpful in solving the US's own problems, but also undermine normal economic and trade cooperation".
"China hopes that the United States will objectively and rationally view and deal with its own issues like fentanyl, rather than threatening other countries with tariffs at every turn," the ministry said.
It said Beijing "urges the US to correct its erroneous practices, meet China halfway, face up to its problems, have frank dialogues, strengthen cooperation and manage differences on the basis of equality, mutual benefit and mutual respect".
Canada and Mexico have also announced plans to hit back.
Canada's Prime Minister Justin Trudeau said on Saturday the country will retaliate against Trump's new tariffs by imposing 25 per cent tariffs on US goods from drinks to appliances.
As relations between the long-time allies who share the world's longest land border reach a new low, Trudeau told a news conference he was slapping tariffs on C$155 billion (US$107 billion) of US goods.
Those on C$30 billion will take effect on Tuesday, the same day as Trump's tariffs, and duties on the remaining C$125 billion in 21 days, he said.
Trudeau warned the coming weeks would be difficult for Canadians and that Trump's tariffs would also hurt Americans.
Addressing Americans, he said: "They will raise costs for you, including food at the grocery store, gas at the pump. They will impede your access to an affordable supply of vital goods."
The Canadian leader said tariffs would include American beer, wine and bourbon, as well as fruits and fruit juices, including orange juice from Trump's home state of Florida. Canada would also target goods including clothing, sports equipment and household appliances.
Canada is considering non-tariff measures, potentially relating to critical minerals, energy procurement and other partnerships, Trudeau said.
Trudeau encouraged Canadians to buy Canadian products and vacation at home rather than in the US.
"We didn't ask for this but we will not back down," Trudeau said.
Mexican President Claudia Sheinbaum on Saturday also ordered retaliatory tariffs.
In a lengthy post on X, Sheinbaum said her government sought dialogue rather than confrontation with its northern neighbour, but that Mexico had been forced to respond in kind.
"I've instructed my economy minister to implement the plan B we've been working on, which includes tariff and non-tariff measures in defence of Mexico's interests," Sheinbaum posted, without going into detail on what US goods her government will target.
The United States is by far Mexico's most important foreign market, while Mexico in 2023 overtook China to become the top destination for US exports.
Mexico has been preparing possible retaliatory tariffs against imports from the US, ranging from 5 per cent to 20 per cent, on pork, cheese, fresh produce, as well as manufactured steel and aluminum, according to sources familiar with the matter. The auto industry would initially be exempt, they said.
US exports to Mexico accounted for more than US$322 billion in 2023, Census Bureau data showed, while the US imported more than US$475 billion worth of Mexican products.
In her post, Sheinbaum also rejected as "slander" the allegation by the White House that drug cartels have an alliance with the Mexican government, a point used by the administration of Trump to explain why it had imposed the tariffs.
Trump said the tariffs against Mexico were due to the country's failure to stop fentanyl getting into the United States as well as what he describes as uncontrolled migration.
Sheinbaum also touted her government's record since she took office in October - seizing 20 million doses of deadly synthetic opioid fentanyl, in addition to detaining over 10,0000 individuals tied to drug trafficking.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.