President Trump Pauses Tariffs on Mexico, Canada as China Retaliates

President Trump agreed Monday to delay for a month the aggressive tariffs he levied on Canada and Mexico, receiving in return pledges from both trading partners to help him strengthen U.S. border security.

But China struck back against new U.S. tariffs with a targeted tit-for-tat warning.

The president used his power to leverage some concessions from Canada and Mexico but allowed a 10 percent tariff on China, which he announced Saturday, to take effect today. The new levy, layered on top of tariffs from his first term, affects more than $400 billion of goods that Americans purchase from China each year. The U.S. took steps to close a loophole that allows Chinese e-commerce companies to avoid tariffs by shipping packages worth less than $800 into the U.S. duty-free.

Beijing moved swiftly early today to retaliate, including with additional tariffs on liquefied natural gas, coal, farm machinery and other products. It imposed restrictions on the export of certain critical minerals, many of which are used in the production of high-tech products.

China’s additional tariffs of 15 percent on coal and liquified natural gas imports from the U.S. start February 10. American crude oil, farm equipment and certain cars and trucks are subject to 10 percent duties.