- By Kamakshi Bishnoi
- Tue, 04 Mar 2025 11:02 AM (IST)
- Source:JND
Canadian Prime Minister Justin Trudeau announced a 25 per cent tariff on US goods worth CAD 30 billion (USD 20.68 billion) in response to Donald Trump's trade war against Canada. Additionally, Mexico has indicated plans to implement countermeasures in response to US tariffs.
This announcement came after Donald Trump stated that the 25 per cent tariffs on imports from Mexico and Canada would take effect starting Tuesday, with ‘no room for delay’ in their implementation.
Canada has further planned to extend these measures to USD 107 billion (CAD 155 billion) from Tuesday if necessary, with the targeted US products including food items, textiles, and furniture, particularly affecting Republican-led states such as Florida and Ohio.
Trudeau criticised the US tariffs as "unjustified," warning that they would lead to higher prices for American consumers and potential job losses, thereby disrupting the longstanding trade relationship between the two countries.
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"Our tariffs will remain in place until the US trade action is withdrawn, and should US tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures," Trudeau’s statement read.
Mexican President Claudia Sheinbaum, without providing many details, indicated that Mexico was prepared to implement countermeasures in response to the US tariffs. Sheinbaum emphasised that threats or tariffs would not resolve issues related to migration or drug consumption in the US. He advocated for collaborative efforts to address these challenges.
Addressing the US tariffs, Sheinbaum said, "We have a plan B, C, D."
President Donald Trump confirmed the enforcement of 25 per cent tariffs on imports from Canada and Mexico, effective from February 4 with an aim to pressure both nations to address issues such as drug trafficking, illegal immigration, and trade imbalances.
"They're going to have to have a tariff. So what they have to do is build their car plants, frankly, and other things in the United States, in which case they have no tariffs," news agency Reuters quoted Trump.
The announcement of these tariffs has led to negative reactions in financial markets. The S&P 500 index dropped by 2 per cent, reflecting investor anxiety over potential disruptions to North American manufacturing and increased consumer prices. President Trump's tariff strategy extends beyond North America, with plans to increase tariffs on Chinese goods by an additional 10 per cent, effective immediately.
