Canada and Mexico have vowed to retaliate after Donald Trump targeted three major trading partners of the United States, which account for more than 40% of the country’s imports.
Canada and Mexico are enacting retaliatory measures in response to a sharp increase in customs duties announced by U.S. President Donald Trump.
Prime Minister Justin Trudeau urged Canadians to “choose Canadian goods” when shopping, effectively calling for a boycott of U.S. manufacturers. The leaders of several Canadian provinces have said they will completely remove American alcohol brands from the shelves of stores under their jurisdiction.
Ottawa initially ordered 25 percent tariffs on 30 billion Canadian dollars (20 billion euros) worth of U.S. imports, including beverages, cosmetics and paper products, starting Tuesday. A second list of goods, including passenger cars, trucks, steel and aluminum products, some fruits and vegetables, beef, pork, dairy products and others, is due to be released soon.
Mexican President Claudia Sheinbaum immediately ordered retaliatory tariffs, without naming the rates or specifying which products were affected.
Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum reportedly had a phone conversation on Saturday after the Trump administration imposed new tariffs – 25 percent on goods from Canada and Mexico, with a lower rate of 10 percent on Canadian oil and other energy products, and 10 percent on imports from China.
According to official statements, Canada and Mexico agreed to stand together against the prohibitive import tariffs, which could deal a major blow to the integrated economies of the three North American countries that have had decades of free trade agreements.
“We are certainly not seeking escalation, but we will stand up for Canada’s interests,” Trudeau said.
“They owe us money.”
On Monday, it was reported that Donald Trump and Prime Minister Justin Trudeau will discuss new 25 percent tariffs. Talks with the Mexican government are also expected.
“I don’t expect anything major. We imposed the tariffs because they owe us a lot of money and I’m sure they will pay,” Trump told reporters before leaving his residence in Mar-a-Lago, Florida.
Canada is the largest export market for 36 U.S. states, and Mexico is the largest trading partner of the U.S. overall.
As of noon Sunday, China had not imposed new tariffs on U.S. goods. But the country’s foreign ministry said Beijing would take “necessary countermeasures to protect its legitimate rights and interests.” The commerce ministry said it would file a lawsuit with the World Trade Organization over the “wrongful actions of the USA”.
Trump: Americans may feel ‘pain’ in trade war with neighbors
Hours after signing executive orders to raise duties on imports, Donald Trump warned Americans of the possible consequences, while taking responsibility for his decision.
The White House chief said Sunday that the sweeping tariffs he imposed against Mexico, Canada and China could cause “some pain” to Americans, while Wall Street and major U.S. trading partners expressed hope the trade war would not last long.
“Will it hurt us? Yes, maybe it will. And maybe it won’t. But we are going to make America great again, and it will be worth the price we have to pay,” the American president wrote in capslock on his Truth social media account.
Trump repeatedly accused Canada and Mexico of failing to curb drug trafficking and illegal immigration, and once again pressed Canada, saying Sunday that the country “should become our favorite 51st state,” which he said would mean “much lower taxes for Canadians, better military protection – and no customs tariffs.”
The Yale University Budget Lab estimates that Trump’s new tariffs would cost the average American household between $1,000 and $1,200 a year.
Experts also warn of the risk of inflation and slower economic growth.
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