Canada, Mexico give Trump taste of own medicine as tariff war escalates

Update: 2025-02-03 20:11 GMT

Toronto: Canada’s Prime Minister and Mexico’s President ordered retaliatory tariffs on goods from the US, following through with their threats after US President Donald Trump sparked a trade war by imposing sweeping tariffs on imports from Canada, Mexico and China.

Canada is initially targeting $30 billion in goods imported from the US with tariffs of 25 per cent to come into force on February 4 including beverages, cosmetics and paper products. A second list will be unveiled soon and will be implemented after public consultation. That will include passenger vehicles, trucks, steel and aluminum products, certain fruits and vegetables, beef, pork, dairy products and more.

Mexico has so far only said it will impose retaliatory tariffs, without mentioning any rate nor products.

Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum spoke by phone Saturday after Trump’s administration imposed sweeping tariffs — 25 per cent on goods from Canada and Mexico, and 10 per cent on imports from China — although there is still no indication the two countries are coordinating responses or will act in concert in the coming days.

Trudeau’s office said in a statement that Canada and Mexico agreed “to enhance the strong bilateral relations.”

“Now is the time to chose products made right here in Canada,” Trudeau posted on X on Sunday. On Saturday, he even suggested Canadians should not buy US products or vacation in the US.

Canada is the largest export market for 36 states and Mexico is the largest trading partner of the US.

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.

At the local level, some authorities in provinces like Ontario, British Columbia and Nova Scotia will remove American liquor brands from government store shelves. The Liquor Control Board of Ontario sells nearly USD 1 billion worth of American wine, beer, spirits and seltzers every year, Ontario Premier Doug Ford pointed out Sunday.

“Not anymore,” Ford said in a statement. “Starting Tuesday, we’re removing American products from LCBO shelves. As the only wholesaler of alcohol in the province, LCBO will also remove American products from its catalogue so other Ontario-based restaurants and retailers can’t order or restock US products.”

Beyond the official response, people are already thinking of ways to face Trump’s decision, including by sharing on social media lists with alternatives to American products.

Trudeau, in fact, addressed Americans directly, saying they the tariffs “will have real consequences for you.” Trump responded Sunday, criticising Canada’s trade surplus with the United States. 

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