US Exporters Face Retaliation After New Trump Tariffs on China, Canada, Mexico

Beijing said it will levy a 15% tariff on U.S. chicken, wheat, corn and cotton, as well as a 10% tariff on sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables and dairy products. China’s finance ministry said the measures, effective March 10, are a direct response to the Trump administration’s decision to use tariffs to address fentanyl trade (see 2502270037).

“The U.S.'s unilateral tariff increase damages the multilateral trading system, increases the burden on U.S. companies and consumers, and undermines the foundation of economic and trade cooperation between China and the U.S.,” the ministry said, according to an unofficial translation.

Affected exports that are shipped from the “place of departure” before March 10 and imported into China between March 10 and April 12 won’t be subject to the additional tariffs, Beijing said.

In a March 4 email to members about the retaliatory tariffs, the Agriculture Transportation Coalition said China is retaliating against U.S. companies in other ways besides new duties. AgTC said Beijing has “suspended” soybean imports from three U.S. companies -- agriculture services company CHS, Louis Dreyfus Company Grains Merchandising and EGT, which operates a Pacific Northwest export grain terminal -- after “claiming detection of ergot and seed coating agents." It also said Chinese imports of U.S. logs have been “halted, claiming presence of pests such as small worms and Aspergillus.”

In addition to tariffs, China on March 4 also added 10 U.S. companies to its so-called unreliable entity list, which blocks firms from participating in import and export activities in China, and added 15 U.S. companies to its export control list, which blocks them from receiving dual-use items from China. The list targets American defense, aerospace and technology companies, including major technology research firm and services provider Leidos, a subdivision of major defense contractor General Dynamics, and drone maker Skydio.

Canada announced a new 25% tariff that it said will target $30 billion worth of imported goods from the U.S. The duties, effective March 4, apply to hundreds of tariff lines, including certain agricultural products; meats, poultry and fish; timber; rubber goods; beauty products; tobacco; clothes; hand tools; home appliances; and a range of other commercial goods.

The duties will remain in place “until the U.S. eliminates its tariffs against Canada,” Prime Minister Justin Trudeau said March 3. They don’t apply to U.S. goods that were already in transit on the effective date.

Trudeau added that the country will impose 25% tariffs on an additional $125 billion worth of American products in 21 days. “Our tariffs will remain in place until the U.S. trade action is withdrawn, and should U.S. tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures,” he said. “While we urge the U.S. administration to reconsider their tariffs, Canada remains firm in standing up for our economy, our jobs, our workers, and for a fair deal.”

Trump said U.S. tariffs against Canada will continue escalating in response to the country’s retaliatory measures. “Please explain to Governor Trudeau, of Canada, that when he puts on a Retaliatory Tariff on the U.S., our Reciprocal Tariff will immediately increase by a like amount!” Trump said March 4 on Truth Social.

The Canadian Society of Customs Brokers said Canada's "phased approach" to retaliatory duties against U.S. imports will help with "mitigating" the trade effects of the measures and "aim to provide businesses with time to adapt."

Still, it's expecting some Canadian businesses to "reduce cross-border activity to manage costs," which could lead to a "decline in brokerage services." Other companies may look for more help from customs brokers to navigate the new tariffs.

"Brokers who can provide strategic guidance will play a critical role in helping businesses comply with new requirements and adjust to changing market conditions," the group said on LinkedIn.

Mexican President Claudia Sheinbaum said the country is also planning to issue retaliatory measures against the U.S., which will be revealed in the coming days. "There is no reason, rationale or justification to support this decision that will affect our people and nations ... Nobody wins," Sheinbaum told a press conference March 4, according to Reuters. She also said she “probably” plans to speak with Trump on March 6.

Trump said he imposed the tariffs because China, Canada and Mexico haven’t done enough to stop the flow of fentanyl and its precursor chemicals into the U.S. While the U.S. Chamber of Commerce supports efforts to curb fentanyl smuggling, Chief Policy Officer Neil Bradley said it also wants to keep costs down for American consumers, and “tariffs will only raise prices and increase the economic pain being felt by everyday Americans across the country.”

Ashli Watts, CEO of the Kentucky Chamber of Commerce, said the last time the U.S. faced retaliatory tariffs from trading partners, under the first Trump administration, Kentucky’s bourbon industry “lost nearly $600 million in exports.”

“These policies have real consequences,” she said. “We urge policymakers to support free enterprise and trade policies that allow Kentucky businesses to compete and grow. Our economy depends on it.”

Along with bourbon, the Distilled Spirits Council said it’s concerned Canadian stores will take other U.S. spirits “off their shelves.” It specifically said American whiskey could “become entangled in a new round of retaliatory tariffs.”

The American Farm Bureau Federation said the U.S. exported more than $83 billion in agricultural products to China, Canada and Mexico, adding that U.S. tariffs and retaliatory measures "will take a toll on rural America." President Zippy Duvall urged Trump to "find ways to resolve disagreements quickly, so farmers can focus on feeding families in America and abroad.”

On March 3, the day before the new tariffs and retaliatory measures took effect, the National Milk Producers Federation published a blog post from CEO Gregg Doud stressing the importance of exports to the American dairy industry. He said the federation has been “pushing against trade barriers that are arising as countries invent new policies that threaten to disrupt our dairy sales,” adding that the group was planning to submit comments to the Trump administration on how it should approach its trade goals.

The U.S.-China Business Council said it would have preferred “strategic and targeted” tariffs as opposed to the sweeping duties put in place this week by the Trump administration. Raising U.S. tariffs against China “is not the way” to address illegal fentanyl trade, Council President Sean Stein said.

“Across-the-board tariffs will hurt US businesses, consumers, and farmers and undermine our global competitiveness,” he said, adding that the U.S. and China should launch negotiations to address fentanyl and other trade issues, “including challenges to selling US goods and services in China’s market and striking a deal that enhances US national security and competitiveness and grows the American economy.”