Canada Mexico Hit Back With Retaliatory Tariffs On US Amid Trade Tensions

Canada Mexico Hit Back With Retaliatory Tariffs On US Amid Trade Tensions

Canada and Mexico have announced retaliatory tariffs on the United States after President Donald Trump imposed levies on both nations alongside China.

Canada’s Response…READ MORE…

Canadian Prime Minister Justin Trudeau declared that Canada would impose a 25% tariff on all US imports in response to the new US trade policy. He revealed that the tariffs would cover $155 billion CAD (approximately $106 billion USD) worth of American goods and would take effect on Tuesday, coinciding with the enforcement of the US tariffs.

Trudeau warned that the decision would have consequences for American industries, particularly manufacturing and auto assembly plants.

“Tariffs against Canada will put American jobs at risk, increase costs for consumers, and disrupt supply chains,” Trudeau stated, according to the BBC.

Mexico’s Retaliation

Mexican President Claudia Sheinbaum expressed disappointment over the US tariffs, stating that Mexico initially sought diplomatic negotiations but was now forced to take action.

In a post on X (formerly Twitter), Sheinbaum announced that Mexico would impose a 25% tariff on all US imports.

“I have instructed my economy minister to implement Plan B, which includes tariff and non-tariff measures to protect Mexico’s interests,” she wrote.

US Justification & Trump’s Executive Order

President Donald Trump defended the tariffs, citing the growing drug crisis and illegal migration as key reasons for his decision.

Under his executive order, the US has imposed:

• 25% tariffs on Canadian and Mexican goods
• 10% tariffs on Chinese imports
• 10% tariffs on Canadian energy exports, including oil, gas, and electricity

Trump accused Canada of failing to curb the flow of illicit drugs into the US, though he acknowledged that Mexico was the primary source of illegal substances and undocumented immigrants.

He vowed that the tariffs would remain in place until the “national emergency” over fentanyl and illegal migration was resolved.

Trudeau Rejects Trump’s Claims

Trudeau dismissed Trump’s accusations, insisting that Canada has one of the most secure borders in the world.

“Less than 1% of fentanyl entering the US originates from Canada, and illegal migration from Canada to the US is also below 1%,” he stated.

He also revealed that Canada had already invested $1.3 billion CAD to strengthen border security, leading to a significant decline in illegal crossings over the past few months.

China’s Reaction

While China has yet to impose countermeasures, its Ministry of Commerce condemned the US tariffs, arguing that they violate World Trade Organization (WTO) regulations.

Beijing announced plans to file a lawsuit against the US at the WTO, stating that the tariffs would harm economic relations rather than solve US domestic issues.

As tensions escalate, the prospect of a full-blown trade war looms, with global markets bracing for economic disruptions and rising consumer prices.

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