Trade Wars Begin: All You Need To Know

Trade War Begins: Key Highlights

At exactly 12.01am ET this morning, the long-awaited 25% US tariffs on Canada and Mexico as well as an additional 10% levy on China went live. The 25% tariffs taking effect apply to all imports from Canada and Mexico, except for Canadian energy which will be tariffed at a 10% rate. 

Canadian and Mexican tariffs were supposed to be the low odds given their potential for blow back onto US growth; according to JPMorgan today’s implementation should therefore raise odds that the plethora of other tariffs that are currently in the works – the 25% EU tariffs, sectoral tariffs on copper, lumber etc., as well as the broader suite of reciprocal tariffs – will be enacted and are more than just negotiating tactics.