Canada, Mexico Hit Back with Tit-for-tat ‘Tariffs’ on US Goods after Trump lLunches ‘Tariff War’
As US President Donald Trump signed an order to impose tariffs on imports from Canada and Mexico, the two countries responded back with retaliatory tariffs on the US goods, considered as a tit-for tat endeavor.
Canada is imposing its own 25 percent tariffs on $155 billion worth of US goods. Mexican President Claudia Sheinbaum also said that she has ordered her economy minister to implement tariff and non-tariff measures to defend her country’s interests after the U.S. slapped across-the-board duties on goods coming from Mexico.
“It will have real consequences for you, the American people,” Trudeau said. He also asked Canadians to ‘choose Canadian products and services rather than American ones.’ Mexican President Claudia Sheinbaum Pardo, in a post on X (formerly Twitter) said, “We categorically reject the White House’s slander against the Mexican government of having alliances with criminal organizations, as well as any intention of intervention in our territory.” She added that her government does not seek confrontation with its northern neighbor but collaboration and dialogue.
“Mexico does not want confrontation. We start from collaboration between neighboring countries. Mexico not only does not want fentanyl to reach the United States, but anywhere. Therefore, if the United States wants to combat criminal groups that traffic drugs and generate violence, we must work together in an integrated manner, but always under the principles of shared responsibility, mutual trust, collaboration and above all, respect for sovereignty, which is not negotiable. Coordination yes; subordination, no”, she posted on X.
However, she also said, “I instruct the Secretary of Economy to implement Plan B that we have been working on, which includes tariff and non-tariff measures in defense of Mexico’s interests.”
Three Largest Trading Partners – China, Mexico and Canada
In fact, US President Donald Trump has announced sweeping new tariffs on all goods imported from America’s three largest trading partners, China, Mexico and Canada. Trump says that the US would impose tariffs beginning on Tuesday of 25% on Canada and Mexico, and 10% on China. Canadian energy faces a lower 10% tariff. He had threatened to impose the import taxes if the three countries did not address his concerns about illegal immigration and drug trafficking. Both Canada and Mexico have said they are preparing retaliatory tariffs of their own.
Trump has indicated that he is ready to escalate the duties if the countries retaliate. Together, China, Mexico and Canada accounted for more than 40% of imports into the US last year. “Tariff announcement is necessary to hold China, Mexico, and Canada accountable for their promises to halt the flood of poisonous drugs into the United States,” the White House said in a statement on X.
How countries respond to Trump’s tariffs is what matters next. Will Donald Trump’s tariffs hurt US consumers?
What is a Tariff?
A tariff is a domestic tax levied on goods as they enter the country, proportional to the value of the import. They are a central part of Trump’s economic vision. He sees them as a way of growing the US economy, protecting jobs and raising tax revenue – and in this case, pushing for policy action from allies. In her response, Mexican President Claudia Sheinbaum called allegations that the Mexican government had alliances with criminal organizations “slander”. The White House, in its announcement, accused Mexico’s government of having “an intolerable alliance” with Mexican drug trafficking organizations.
In a statement, Sheinbaum called on the US to do more to clamp down on the illegal flow of guns south to arm the cartels. Her country is willing to work with the US, she said.She has instructed her economy minister to respond with tariff and non-tariff measures. Canadian Prime Minister Justin Trudeau said his country will also continue responding.
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