Canada and Mexico have ordered retaliatory measures against the US after President Donald Trump placed sweeping tariffs on goods from its two neighbours and China.
Prime Minister Justin Trudeau said he would “not back down in standing up for Canadians”, but warned of real consequences for people on both sides of the border.
He set out “far-reaching” tariffs of 25 percent, which will first come into effect on 30bn-worth US goods on Tuesday, and another 125bn in 21 days to give Canadian firms time to adjust.
It comes after Trump signed executive orders implementing 25 percent tariffs on imports from Canada and Mexico, and 10 percent tariffs on goods from China, potentially setting up rapid price increases for American consumers.
The orders include retaliation clauses, which means the U.S. will increase tariffs if the countries respond with similar moves, Bloomberg reports.
Trump aims to use tariffs as leverage to encourage those countries to take more action against illegal immigration and the smuggling of chemicals used in fentanyl production. The president suggested he might mitigate the impact on oil imports with a reduced rate.
“Starting tomorrow, those tariffs will be in place,” White House press secretary Karoline Leavitt told reporters on Friday. “These are promises made and promises kept by the president.”
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Mexico ‘categorically reject’ White House claim of alliances with criminal groups
Mexican President Claudia Sheinbaum said she had instructed her economy secretary to implement a response that includes retaliatory tariffs and other measures in defence of Mexico’s interests.
“We categorically reject the White House’s slander that the Mexican government has alliances with criminal organisations, as well as any intention of meddling in our territory,” Ms Sheinbaum wrote in a post on X.
“If the United States government and its agencies wanted to address the serious fentanyl consumption in their country, they could fight the sale of drugs on the streets of their major cities, which they don’t do and the laundering of money that this illegal activity generates that has done so much harm to its population.”
Mexico and Canada order retaliatory messages in trade war with US
Mexico and Canada have ordered retaliatory measures against the US after President Donald Trump placed sweeping tariffs on goods from its two neighbours and China.
Mr Trump posted on social media that the tariffs are necessary “to protect Americans”, pressing the three nations to do more to curb the manufacture and export of illicit fentanyl and for Canada and Mexico to reduce illegal immigration into the US.
The action fulfilled one of Mr Trump’s commitments to voters, but threw the global economy and his political mandate to lower prices into turmoil.
Canadian Prime Minister Justin Trudeau said in response that Canadian duties on 30 billion dollars (£24 billion) worth of trade in American alcohol and fruit will take effect on Tuesday when the US tariffs begin.
He opened his address to Canadians with a message aimed at American consumers.
“It will have real consequences for you, the American people,” he said, saying it will result in higher prices on groceries and other goods.
Mr Trudeau channelled the views of many Canadians feeling betrayed by their neighbour and long-time ally, reminding Americans that Canadian troops fought alongside them in Afghanistan.
“The actions taken today by the White House split us apart instead of bringing us together,” Mr Trudeau said, warning in French that it could bring about “dark times” for many people.
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Source: independent.co.uk