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Inside Canada and Mexico's response to US tariffs

BA (according to Tin Tuc Newspaper) February 2, 2025 20:10

Canadian Prime Minister Justin Trudeau has announced retaliatory tariffs of 25% on US goods and warned that Washington's measures could hinder access to goods vital to US security.

thu-tuong-canada-justin-trudeau.jpg
Canadian Prime Minister Justin Trudeau.

Meanwhile, Mexico also voiced its objections and prepared to take measures to protect national interests.

After President Donald Trump signed an executive order imposing a 25% tariff on Canadian and Mexican exports to the United States, Prime Minister Trudeau made a televised speech on the evening of February 1, announcing specific measures in response to this move.

Accordingly, Canada will impose a 25% tariff on imported products from the US worth 155 billion Canadian dollars (107 billion USD), implemented in stages. Mr. Trudeau emphasized that Mr. Trump's decision has damaged American consumers and industry by disrupting the supply chain of important minerals and raw materials from Canada, such as: oil, energy and timber.

Speaking directly to the American people, Mr. Trudeau warned that tariffs imposed on Canada would put U.S. jobs at risk, potentially leading to the closure of auto assembly plants and other manufacturing facilities.

He also said the policy would increase the cost of living, affecting the prices of food, gasoline and other essential goods. Mr. Trudeau made clear that Mr. Trump's tariffs would hinder the supply of items important to US security such as nickel, potassium, uranium, steel and aluminum.

Mr. Trudeau criticized Mr. Trump's decision as violating the United States-Mexico-Canada Agreement (USMCA), which was negotiated and signed by the three countries after the Trump administration canceled the North American Free Trade Agreement (NAFTA).

Canada will take retaliatory measures starting February 4, starting with a 25% tariff on $30 billion worth of US goods. Over the next three weeks, the tariffs will be expanded to cover $125 billion worth of US imports.

Ontario Premier Doug Ford, Canada’s industrial heartland, stressed that the country had no choice but to respond strongly. According to him, Canada has many important commodities for the US such as high-quality nickel, energy, electricity, uranium, potash, aluminum and should make the most of this advantage in the negotiation process.

In addition to tariffs, Mr. Trudeau has urged Canadians to limit their purchases of American products and prioritize domestic products. Some provinces have already begun removing American spirits, beer and other alcoholic products from their retail systems.

Ottawa is also considering additional tariffs on a range of other US goods including clothing, sporting goods and household goods.

In Mexico, President Claudia Sheinbaum also criticized Mr. Trump's decision and ordered the country's Economy Minister to implement tariff and non-tariff measures to protect national interests.

She rejected White House accusations that the Mexican government is in league with criminal organizations and said the country would respond firmly. In a speech shortly after Mr. Trump announced the tariffs, Ms. Sheinbaum said Mexico would not bow to U.S. pressure.

China's Ministry of Commerce also strongly criticized the US move, saying the tariffs seriously violated World Trade Organization (WTO) rules. Beijing called on Washington to engage in frank dialogue and enhance cooperation instead of trade confrontation.

Meanwhile, the Trump administration argues that the new tariffs are necessary to protect the US economy, citing issues related to immigration and drug trafficking.

Mr Trump has said he will not back down in the face of threats from trading partners. He has stressed that tariffs were part of his campaign pledge and has said the measures will not cause inflation but will instead help the US economy grow stronger.

Mr Trump’s decision could spark a major trade war between the US and its three top trading partners. Analysts warn that the tariffs will increase the cost of living in the US, especially food and energy prices.

Within the United States, President Trump’s measures are also causing controversy. Washington State Senator Patty Murray commented: “President Trump’s tariffs will directly harm American families. American consumers will pay the price for these tariffs, not other countries.”

Colorado Governor Jared Polis also opposed it, saying the tariff policy would reduce the competitiveness of the US economy.

Despite the criticism, many of Mr Trump's supporters defended his decision. House Finance Committee Chairman Jason Smith said the measures sent a strong message that the US would not tolerate drug trafficking and illegal immigration.

BA (according to Tin Tuc Newspaper)
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Inside Canada and Mexico's response to US tariffs