Global markets fell after the US's harsh tariffs took effect at midnight, and China and Canada immediately implemented retaliatory measures. Mexico stated it would announce its retaliatory measures on Sunday.
Canadian Prime Minister Justin Trudeau on Tuesday sharply condemned the tariffs imposed by President Trump against Canada, as well as Mexico and China, stating in a televised address that they would harm people on both sides of the US-Canada border and that Canada would «relentlessly fight» to protect its economy.
Trudeau stated that Canada has done everything it promised to ensure the security of its border, and Trump's decision to impose tariffs indicates that he has other goals in mind, such as the annexation of Canada. He also said that he would meet with other Canadian officials later today to discuss the country's retaliatory measures, including imposing tariffs on American exports and possibly canceling contracts for American companies.
«Now is the time to strike back hard and demonstrate that in the fight with Canada, there will be no winners», — Trudeau is quoted by The New York Times.
Canada imposed 25-percent tariffs on goods worth 30 billion dollars, but did not specify which goods would be affected. In his statement, Trudeau said that in 21 days, the tariffs would extend to American goods worth 125 billion dollars.
Canada and China quickly announced retaliatory tariffs after the American tariffs — an additional 10 percent on imports from China and 25 percent on almost all imports from Canada and Mexico — took effect. Mexico stated that it might implement its own countermeasures by Sunday, also stating that it has fully complied with all agreements on border security and combating drug cartels. These measures raise the stakes and costs of the trade war, which has already led to a drop in stock prices and worried global markets, which opened lower on Tuesday.
Donald Trump decided to explain the nuances on the Truth Social website, claiming that companies can avoid tariffs if they open a store in the US. As the publication writes, American tariffs may encourage some companies to open factories in the United States, but they will also disrupt supply chains, lead to increased costs for American consumers and manufacturers, and exacerbate diplomatic relations.
Trade wars were a hallmark of Trump's first term. But his latest tariffs could significantly increase the scale of the damage. Canada, Mexico, and China account for more than a third of the goods imported into the United States.
Photo: AP