Canada and Mexico are retaliating with steep tariffs after Trump imposed 25% levies on their exports. Prime Minister Justin Trudeau and President Claudia Sheinbaum condemned the move, warning of economic fallout.
Canada and Mexico ordered retaliatory tariffs on American goods in response to sweeping tariffs imposed by US President Donald Trump, and businesses and consumers in both countries questioned, on Sunday, February 2, how the new trade war might affect them.
Canada initially ordered tariffs of 25% on American imports starting February 4, including beverages, cosmetics and paper products worth 30 billion Canadian dollars ($20 billion). A second list of goods was to be released soon, including passenger vehicles, trucks, steel and aluminum products, certain fruits and vegetables, beef, pork, dairy products, aerospace products and more. Those goods were estimated to be worth 125 billion Canadian dollars ($85 billion). Mexico has so far said only that it will impose retaliatory tariffs, without mentioning any rate or products.
Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum spoke by phone Saturday, February 1, after Trump’s administration imposed sweeping tariffs – 25% on goods from Canada and Mexico, and 10% on imports from China – although there is still no indication the two countries are coordinating responses or will act in concert in the coming days.
Trudeau’s office said in a statement that Canada and Mexico agreed “to enhance the strong bilateral relations.”
“Now is the time to chose products made right here in Canada,” Trudeau posted on X on Sunday. On Saturday, he even suggested Canadians should not buy US products or vacation in the US. Canada is the largest export market for 36 states and Mexico is the largest trading partner of the US.
Canada and Mexico ordered the tariffs despite Trump’s further threat to increase the duties charged if retaliatory levies are placed on American goods. “We’re certainly not looking to escalate but we will stand up for Canada,” Trudeau said late on Saturday