U.S. Tariffs on Canada and Mexico Launch Trade War

The U.S. has instituted a 25 percent tariff on imports from Canada and Mexico, alongside a 10 percent tariff on Canadian energy, prompting Canada to retaliate with its own tariffs. Prime Minister Justin Trudeau has vowed that Canada’s tariffs will remain until the U.S. actions are reversed, indicating an impending trade war between the countries. Further tariff measures are anticipated amid ongoing trade tensions.

The trade relationship between the United States, Canada, and Mexico underwent a significant shift with the implementation of U.S. tariffs. As of Tuesday, a 25 percent tariff has been imposed on all goods imported into the United States from these neighboring countries, alongside a 10 percent tariff specifically targeting Canada’s energy exports. This move marks the onset of a trade war among long-standing North American allies.

In retaliation, Canada has initiated a 25 percent tariff on approximately $30 billion worth of U.S. goods, with additional tariffs on another $125 billion in American products anticipated in the near future. Prime Minister Justin Trudeau emphasized Canada’s determination not to let what he termed an “unjustified decision” by the U.S. go without a response. He stated, “Our tariffs will remain in place until the U.S. trade action is withdrawn.”

Trudeau also mentioned ongoing discussions with various provinces and territories regarding potential non-tariff measures should U.S. tariffs persist. During a press conference scheduled for 10:30 a.m. Eastern in Ottawa, Trudeau will be joined by key members of his cabinet, including Finance Minister Dominic LeBlanc and Foreign Affairs Minister Mélanie Joly.

President Donald Trump originally enacted these tariffs on February 1, linking them to issues of illegal immigration and drug trafficking. Although the tariffs were briefly suspended following new commitments regarding border security from Canada, the U.S. President ultimately proceeded with their implementation.

In conjunction with the tariffs already in place, Canada is preparing for two additional rounds of tariffs threatened by the Trump administration. These include a further 25 percent duty on all steel and aluminum imports, which is slated to take effect on March 12. Additionally, President Trump plans to introduce global reciprocal tariffs for all trading partners on April 2, impacting Canada as well.

In summary, the newly imposed tariffs by the United States on Canadian and Mexican goods have triggered a reciprocal response from Canada, initiating a trade conflict between the nations. Prime Minister Justin Trudeau has articulated Canada’s commitment to counterbalance the U.S. measures while preparing for possible future tariffs. The unfolding situation highlights the complexities and challenges in North American trade relations.

Original Source: globalnews.ca