Canada's caretaker Prime Minister Justin Trudeau announced on Saturday (local time) that the country will be imposing 25 per cent tariff on imports from the US in retaliation to the similar move by US President Donald Trump.
"Tariffs violate a free trade agreement that was negotiated a few years ago. Tariffs will have real consequences for the American people. This will include immediate tariffs on C$30 billion worth of goods as of Tuesday. This will be followed by further tariffs on C$125 billion worth of American products in 21 days time," said Trudeau at a press conference.
Trump has been threatening to impose tariffs on Canadian goods for months but on Saturday, he actually signed an executive order that imposed 25 per cent tariff on imports from Canada and Mexico. In addition, he imposed 10 per cent tariffs on all imports from China.
Trudeau in addition to announcing tariffs on American goods, said that Canada was also considering some non-tariff measures over critical minerals, energy procurement and other partnerships
Trump's executive order imposing tariffs also has a mechanism to escalate the situation if other countries retaliate to US measures.
Trump's latest move may result in trade war and economic standoff with Mexico and Canada, the countries which are US' two largest trade partners.
Following his announcement of retaliatory tariffs, Trudeau took to social media platform X (formerly Twitter) to say that he will speak with Mexican President Claudia Sheinbaum and has already spoken with premiers of Canadian states.
The United States has confirmed that it intends to impose 25% tariffs on most Canadian goods, with 10% tariffs on energy, starting February 4.
— Justin Trudeau (@JustinTrudeau) February 2, 2025
I’ve met with the Premiers and our Cabinet today, and I’ll be speaking with President Sheinbaum of Mexico shortly.
We did…
Mexico Hits US With Retaliatory Tariffs
Like Canada, Mexico has hit back at US with retaliatory tariffs.
"Mexico does not want confrontation. We start from collaboration between neighbouring countries. We must work together in an integrated manner, but always under the principles of shared responsibility, mutual trust, collaboration and, above all, respect for sovereignty, which is not negotiable. Coordination, yes; subordination, no," said Mexican President Claudia Sheinbaum on X.
She rejected Trump's allegation that Mexican government had ties with criminal gangs deeming such an allegation 'slander'.
“We categorically reject the White House's slander against the Mexican government of having alliances with criminal organisations, as well as any intention of intervention in our territory,” she said.