Canada has announced that it will impose retaliatory tariffs on U.S. goods worth $107 billion (155 billion Canadian dollars) starting Tuesday after U.S. President Donald Trump refused to back down from his decision to impose high tariffs on its North American neighbors.
Outgoing Canadian Prime Minister Justin Trudeau, in a last-ditch effort to prevent the U.S. from enforcing these tariffs, stated that Canada would initially impose a 25% tariff on U.S. goods worth 30 billion Canadian dollars from Tuesday.
The remaining retaliatory tariffs, covering goods valued at 125 billion Canadian dollars, would be implemented within the next 21 days.
Trudeau emphasized that Canada’s countermeasures would remain in place until the United States withdrew its trade actions. He further stated that if the U.S. tariffs persisted, his government was actively working with provincial and territorial leaders to explore additional non-tariff measures to counter the economic impact.
His remarks signaled a strong stance from Canada, reinforcing its commitment to protecting its industries and economy from the adverse effects of Trump’s trade policies.
Meanwhile, Mexico also indicated that it was prepared for the economic fallout should the U.S. proceed with the tariffs. President Claudia Sheinbaum, speaking on Monday, reassured that her government had multiple contingency plans in place to mitigate the potential damage caused by the new U.S. trade measures.
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Without revealing specifics, Sheinbaum stated that Mexico had developed alternative strategies, asserting, "We have a plan B, C, D."
These firm responses from Canada and Mexico come just as the March 4 deadline set by President Trump to impose the tariffs officially takes effect.
The U.S. president had initially announced the tariff hikes in February, citing concerns over illegal immigration and drug trafficking, accusing Canada and Mexico of failing to take adequate action to curb these issues.
While the implementation of the tariffs was delayed by a month, Trump reaffirmed on Monday that there would be no further postponements or negotiations.
Dismissing any possibility of Canada or Mexico averting the tariffs, Trump made it clear to reporters that his decision was final. He stated that there was "no room left" for either country to take steps to prevent the trade measures from being enforced.
Confirming that the 25% tariffs on Canadian and Mexican imports were fully prepared to take effect, Trump declared that his administration was moving forward without exception.
The escalation of these trade tensions has raised concerns among economists and industry leaders, who warn that the tariffs could lead to economic disruptions and increased costs for consumers across North America.
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