By Sarah Baafi
President Donald Trump has ignited a trade conflict with key U.S. allies by imposing steep tariffs on imports from Canada, Mexico, and China. Signed on Saturday, the executive order enforces a 25% tariff on Canadian and Mexican goods, with a reduced 10% tariff on Canadian energy products and Chinese imports. The tariffs, set to take effect Tuesday, were justified by Trump as measures to combat illegal immigration and drug trafficking. “These actions are necessary to protect American jobs and security,” Trump stated.
In a swift retaliation, Canadian Prime Minister Justin Trudeau announced 25% counter-tariffs on U.S. goods valued at approximately $155 billion CAD (around $106 billion USD). Speaking at a press conference Saturday evening, Trudeau said the tariffs would begin Tuesday on $30 billion worth of goods, with the remaining measures phased in over three weeks. “We didn’t ask for this, but we will stand firm for Canadians,” Trudeau remarked, warning that the U.S. tariffs would harm both economies.
Canada’s response targets a wide array of American products, including beer, wine, bourbon, fruits, vegetables, clothing, appliances, and lumber. Trudeau emphasized that these measures would have tangible consequences for American consumers. “Tariffs against Canada will put your jobs at risk and raise costs for families at grocery stores and gas pumps,” he cautioned.
Mexico also signaled its intention to impose retaliatory tariffs but has yet to release specifics. Meanwhile, China announced plans to challenge the U.S. tariffs at the World Trade Organization while preparing “necessary countermeasures.” Together, these nations account for over 40% of U.S. imports, raising concerns about rising consumer prices and strained global trade relations.
As tensions escalate, experts warn of significant economic fallout. The Canadian economy could shrink by 2.6%, while the U.S. may see inflationary pressures increase. Despite international criticism, Trump has signaled his willingness to escalate further if retaliatory actions persist, stating that “America will no longer be taken advantage of.”
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