Tariffs: Trump’s trade war sparks retaliation from Canada, Mexico

Tariffs: Trump’s trade war sparks retaliation from Canada, Mexico

Toronto (AP) – Canada’s Prime Minister and Mexico’s president ordered reciprocal tariffs on goods from the United States that came with their threats after US Donald Trump triggered a trade war by imposing sweeping tariffs on Canada, Mexico and China imports.

Canada had been proactively saying for months that it would respond to all tariffs on Washington’s North American allies, while Mexico followed a more cautious approach. But in the end, both nations did what they expected: Retruction.

Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum spoke by phone on Saturday after Trump’s administration introduced sweeping tariffs – 25% on goods from Canada and Mexico, and 10% on imports from China – although there is still no indication the coming days.

Trudeau’s office released a statement about the call with Sheinbaum, where they agreed to work together to keep a strong bilateral relationship.

“They talked about the introduction of US tariffs for both countries as well as their respective efforts to improve border security and fight the production and distribution of illegal drugs,” a statement said.

Unlike Mexico, whose president announced only that it will introduce retaliation gums without mentioning any price or products, Trudeau announced that Canada will respond with 25% duty against $ 155 billion worth of US items, including alcohol, furniture and orange juice, and he even suggested Canadians shouldn’t buy us products or holidays in the US

Canada and Mexico ordered customs duties late Saturday despite Trump’s further threat to increase the tasks charged if retirement fees are placed on US goods.

“We don’t want to be here. We didn’t ask for this. But we will not return, ”Trudeau said late Saturday. “We certainly do not seem to escalate, but we will stand up to Canada.”

At the local level, some authorities in provinces such as Ontario, British Columbia and Nova Scotia American spirits brands from the Government Store shelves. Ontario Premier Doug Ford said on Sunday that Liquor Control Board of Ontario sells almost $ 1 billion value of American wine, beer, spirits and Seltzers every year.

“No longer,” Ford said in a statement. “From Tuesday we remove American products from LCBO shelves. As the only wholesaler of alcohol in the province, LCBO will also remove American products from its catalog, so other Ontario-based restaurants and retailers cannot order or refill US products. “

And besides the official answers, people are already thinking about their own ways of meeting Trump’s decision, and one of the initial reactions has been to share on social media lists with alternatives to American products.

Trudeau actually approached Americans directly and said that they duty “will have real consequences for you.”

“Careful trudeau. The Texas economy is larger than Canadas. And we’re not afraid to use it. “Texas Republican Governor Greg Abbott posted at X after Trudeau spoke.

Canadians feel an undeniable sense of betrayal from their disposable closest allies and friends. Trudeau reminded the Americans that Canadian troops fought with them in Afghanistan and helped respond to countless crises from fires in California to Hurricane Katrina.

Canadian hockey fans lived the US national anthem at two National Hockey League matches on Saturday night.

In Mexico, the official public approach to Trump’s customs threat has been different, which has limited public statements to say that the government was prepared for what was coming and that it would ensure that the country was respected.

Remembering how Mexico in 2019 was ultimately able to avoid Trump’s customs threat by adding immigration control to its newly created National Guard, Mexico hoped to dodge the duty again or at least find a way to get them raised quickly.

But the accusation of criminal alliances with Sheinbaum’s administration pushed her to beat back. She urged the United States to clean up her own drugs and cannons problems and keep her nose out of Mexico. Trump said he imposed customs to stop the flow of illegal immigrants and drugs over both the southern and northern US borders.

In addition to the tariffs, academics and diplomats in Mexico criticized the “retaliation clause”, which Trump included, threatening to raise customs levels even higher if the goals hit back.

Martha Bárcena, former Mexico ambassador to the United States during Trump’s first period, said it is “very delicate because there has never been such a tough official statement from the US government against the Mexican government.”

“It not only indicates a lack of trust, but the consideration of the Mexican government as a national security threat against the United States with all its consequences,” Bárcena said.

Gabriela Siller, director of economic analysis at the Mexican Financial Group Banco Base, said tariffs could trigger an “economic crisis” in Mexico, resulting in a battle for key industries, rising unemployment and price increases.

In the short term, Sheinbaum’s government would probably have to “apply a counter -cyclic fiscal policy in Mexico so that there would be no crash” and take on the mounting of debt, Siller said.

In the long term, the government would have to seek out new trade agreements, but the dependence of trading ties with the United States will make it difficult for Mexico to quickly diversify exports, she said.

After Trump won the November election, Canadian leaders openly said Mexico was the problem of trade and the border, not Canada. And some have continued to say that.

“I can assure you what President Trump is underestimating – the resistance of the Canadian people, the strength of the Canadian people. No matter what political strip, we come from Canada we are united, ”said Ontario Premier Doug Ford. “I can tell the American people, Canada is not the problem. The problem is the Mexican border and China. This is where the problem is. “

The trade war comes as Canada enters an election cycle. Trudeau’s Liberal Party announces a new leader on March 9, and a spring election is expected.

“Canada will not bow to a bully,” said Mark Carney, considered the Frontrunner to replace Trudeau.

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Verza contributed from Mexico City. AP -Autners Megan Janetsky and Fabiola Sánchez also contributed from Mexico City.