Canada and Mexico Respond to US's 25% Tariffs

The US's implementation of a 25 percent tariff on imports from Canada and Mexico has led to immediate responses from both nations, raising the possibility of a trade conflict among the North American neighbors.

Canada and Mexico Respond to US's 25% Tariffs
The United States has decided to implement a 25 percent tariff on imports from Canada and Mexico, prompting immediate backlash from both nations and potentially igniting a trade war among the North American allies.

Canadian Prime Minister Justin Trudeau responded by declaring that Canada would impose a 25 percent tariff on US goods totaling C$155 billion. Tariffs on goods valued at C$30 billion are set to begin on February 4, while the tariffs on the remaining C$125 billion will roll out within a 21-day period.

British Columbia Premier David Eby criticized the US tariffs, asserting that "President Trump's 25 percent tariffs are a complete betrayal of the historic bond between our countries and a declaration of economic war against a trusted ally." He outlined measures such as instructing the BC Liquor Distribution Branch to cease purchasing American liquor from "red states" and to remove popular brands from those states from the shelves of provincial liquor stores. Furthermore, he indicated a push to exclude US products from government procurement.

In Mexico, President Claudia Sheinbaum confirmed her administration would adopt retaliatory steps, stating that Mexico will respond to tariffs imposed by US President Donald Trump with its own tariffs and additional measures.

According to a White House statement, the tariffs are scheduled to take effect "on or after 12:01 a.m. eastern time on February 4, 2025." The order signed by Trump also incorporates an escalation mechanism that would increase tariffs if Canada and Mexico respond in kind, potentially worsening the trade conflict, as reported by the Associated Press.

The United States relies significantly on imports from its three largest trading partners: Mexico, Canada, and China. During the initial 11 months of 2024, the US imported approximately $466.6 billion from Mexico, $377.2 billion from Canada, and $401.4 billion in goods from China, based on data from the US Census Bureau.

Thomas Evans for TROIB News