Canada Has Announced It Is Placing Its Own Tariffs On The US To Retaliate Against Trump’s Tariffs
"I think Canadians are a little perplexed as to why our closest friends and neighbors are choosing to target us."
After US president Donald Trump announced he is imposing tariffs on imports from Canada and Mexico, both countries have hit back with retaliatory tariffs on US goods, growing fear of a global trade war
On Saturday, Feb. 1, Trump announced a 25% tariff, a tax on imported goods, on goods from Canada and Mexico and a 10% tariff on all imports from China, set to take effect from Feb. 4.
The tariffs are expected to hurt Mexico, Canada and China’s economies, as the US is their biggest trading partner.
Trump's tariffs are also expected to increase prices in the US, despite his criticism of former president Joe Biden over inflation.
He said the tariffs were needed to protect American interests, particularly in response to illegal immigration and the influx of fentanyl, an addictive painkiller drug.
He accused Mexico’s government of having an “intolerable alliance” with drug trafficking organizations and claimed that drug trafficking from Canada is rising.
Canadian prime minister Justin Trudeau then announced a matching 25% tariff on $155 billion Canadian dollars (US$107 billion) worth of US goods, including beer, wine, fruit juice and household products.
Canada’s tariffs on the US will begin on the same day Feb. 4, first affecting $30 billion Canadian dollars (US$ 20.84 billion) in goods, with more added in 21 days.
In a speech announcing the tariffs, Trudeau said that many Canadians were "perplexed" by Trump’s decision to target a close ally instead of a more "challenging" country.
“I don’t think many Americans wake up in the morning saying, ‘Oh, we should go after Canada,’” he said.
Trudeau also said that “emotions may run high” between Canadians and Americans, particularly around hockey games as Canadian hockey fans booed the American national anthem during two National Hockey League games on Saturday, Feb. 1 in response to Trump’s decision.
He said US tariffs would not only hurt Canadians but also have "real consequences" for Americans, urging Canadians to buy local products and take vacations within Canada.
Meanwhile, Mexican president Claudia Sheinbaum also announced retaliatory tariffs to “defend Mexico’s interests" without yet specifying the details, but insisted that Mexico “doesn’t want confrontation.”
China also responded to the US by promising “corresponding countermeasures.”
On Monday, Feb. 3, Trump and Sheinbaum announced that the US tariffs will be “paused” for one month after they had what Sheinbaum called “a good conversation”.
You Might Also Be Interested In
Sofia Hou
Isha Jain
