Canada Vows Strong Response to New U.S. Tariffs, While Mexico Urges Caution
Canadian Prime Minister Trudeau promises equivalent retaliation to U.S. tariffs, as Mexican President Sheinbaum calls for a measured response.
MONTREAL - Canadian Prime Minister Justin Trudeau has promised a 'robust, swift, and measured' response if U.S. President Donald Trump imposes 25 percent tariffs on Canadian goods.
This announcement comes as part of a broader tariff strategy by Trump, which includes targeting key trading partners such as Canada and Mexico, both part of the USMCA (United States-Mexico-Canada Agreement).
In a press conference on Tuesday, Trudeau stated that Canada's response would match the U.S. tariffs 'dollar for dollar,' though he acknowledged potential costs to Canadians.
His stance underscores the importance of protecting Canadian economic interests while attempting to avoid escalating trade tensions.
Meanwhile, Mexican President Claudia Sheinbaum responded to the tariff announcement with a call for 'cool heads' and a focus on existing trade agreements.
She emphasized the necessity of adhering to the terms of the USMCA, which includes a scheduled review in 2026, as a means to navigate the current trade uncertainty.
This tariff announcement follows President Trump's accusations against Canada and Mexico for not adequately addressing illegal immigration and the fentanyl crisis, issues he has consistently highlighted in his policy agenda.
Despite these tensions, Mexico has emerged as the United States' largest trading partner since 2023, surpassing China.
Economic analysts warn that the imposition of tariffs could severely impact Canada's economy, which exports approximately 75 percent of its goods and services to the U.S. Potential Canadian countermeasures could lead to a 5 percent reduction in GDP, a sharp increase in unemployment, and a significant rise in inflation, which is currently at 1.8 percent year-over-year.
Trudeau described the situation as 'crucial' for Canada, as economists express concerns over potential repercussions.
Howard Lutnick, a possible candidate for Trump's Commerce Secretary, suggested that foreign businesses could avoid U.S. tariffs by establishing manufacturing operations within the United States.
As the situation develops, the Mexican government has indicated its intention to engage in dialogues for the review set by the USMCA in 2026, while also addressing ongoing sectoral disputes, including genetically modified U.S. corn and Canadian dairy products.
This trade landscape continues to unfold amidst broader global trade tensions, exemplified by Trump's recent warning to the BRICS nations about possible 100 percent tariffs should they attempt to bypass the U.S. dollar in international trade.
This announcement comes as part of a broader tariff strategy by Trump, which includes targeting key trading partners such as Canada and Mexico, both part of the USMCA (United States-Mexico-Canada Agreement).
In a press conference on Tuesday, Trudeau stated that Canada's response would match the U.S. tariffs 'dollar for dollar,' though he acknowledged potential costs to Canadians.
His stance underscores the importance of protecting Canadian economic interests while attempting to avoid escalating trade tensions.
Meanwhile, Mexican President Claudia Sheinbaum responded to the tariff announcement with a call for 'cool heads' and a focus on existing trade agreements.
She emphasized the necessity of adhering to the terms of the USMCA, which includes a scheduled review in 2026, as a means to navigate the current trade uncertainty.
This tariff announcement follows President Trump's accusations against Canada and Mexico for not adequately addressing illegal immigration and the fentanyl crisis, issues he has consistently highlighted in his policy agenda.
Despite these tensions, Mexico has emerged as the United States' largest trading partner since 2023, surpassing China.
Economic analysts warn that the imposition of tariffs could severely impact Canada's economy, which exports approximately 75 percent of its goods and services to the U.S. Potential Canadian countermeasures could lead to a 5 percent reduction in GDP, a sharp increase in unemployment, and a significant rise in inflation, which is currently at 1.8 percent year-over-year.
Trudeau described the situation as 'crucial' for Canada, as economists express concerns over potential repercussions.
Howard Lutnick, a possible candidate for Trump's Commerce Secretary, suggested that foreign businesses could avoid U.S. tariffs by establishing manufacturing operations within the United States.
As the situation develops, the Mexican government has indicated its intention to engage in dialogues for the review set by the USMCA in 2026, while also addressing ongoing sectoral disputes, including genetically modified U.S. corn and Canadian dairy products.
This trade landscape continues to unfold amidst broader global trade tensions, exemplified by Trump's recent warning to the BRICS nations about possible 100 percent tariffs should they attempt to bypass the U.S. dollar in international trade.
