President Trump declared an economic emergency so that he could place duties of 10% on all imports from China and 25% on imports from Mexico and Canada.
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 questions on Sunday how the new trade war might affect them.
Canada initially ordered tariffs of 25% on American imports starting from Tuesday, 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 aluminium products, certain fruits and vegetables, beef, pork, dairy products and more.
Those goods were estimated to be worth 125 billion Canadian dollars (€83 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 after Trump’s administration imposed the new tariffs — 25% on goods from Canada and Mexico, with a lower rate of 10% for Canadian oil, and 10% on imports from China.
Trudeau’s office said in a statement that Canada and Mexico agreed “to enhance the strong bilateral relations” between their countries. Canadian officials have had extensive dialogue with their Mexican counterparts, but a senior Canadian official said he would not go as far as to say the tariff responses were coordinated.
Canada is the largest export market for 36 states, and Mexico is the largest trading partner of the U.S.
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 Saturday.
Trump responded Sunday, criticizing Canada’s trade surplus with the United States and contending that without that surplus, “Canada ceases to exist as a viable Country. Harsh but true! Therefore, Canada should become our Cherished 51st State. Much lower taxes, and far better military protection for the people of Canada — AND NO TARIFFS!”
