The United States has imposed a 25 percent tariff on Canadian and Mexican imports, igniting a trade conflict. In response, Canada has enacted its own 25 percent tariffs on U.S. goods and plans additional measures. Prime Minister Trudeau vowed to protect Canadian interests amidst further tariff threats from the U.S., indicating ongoing discussions for non-tariff responses.
The implementation of sweeping tariffs by the United States on Canadian and Mexican goods has officially begun, inciting a trade war between the adjacent North American countries. As of Tuesday, a 25 percent tariff on all imports from Canada and Mexico is now effective, with an additional 10 percent tariff applied to Canada’s energy sector.
In retaliation, Canada has initiated a 25 percent tariff on $30 billion worth of American products, with plans for further tariffs on an additional $125 billion of U.S. goods to be enacted within three weeks. Prime Minister Justin Trudeau emphasized that Canada would not allow these unwarranted tariffs to go unanswered.
“Canada will not let this unjustified decision go unanswered,” stated Prime Minister Trudeau shortly before the tariffs took effect. He added that Canadian tariffs will remain until the U.S. trade actions are revoked and hinted at exploring non-tariff measures if the situation does not improve.
In light of ongoing tensions, President Trump had previously signed an executive order calling for these tariffs due to concerns over illegal migration and fentanyl trafficking. Although the tariffs were briefly reevaluated following new border security commitments from Canada, implementation proceeded as planned.
Canada is also preparing for further tariffs from the Trump administration, which include a 25 percent duty on all steel and aluminum imports effective March 12, along with additional global tariffs earmarked for all trading partners on April 2.
These actions signal escalating trade tensions that could have significant implications for economic relations within North America.
The enforcement of tariffs by the United States against Canada and Mexico marks the beginning of a trade war between longstanding allies. Canada has responded firmly with equivalent tariffs on U.S. goods, highlighting its commitment to protecting its economy. As both nations prepare for further escalations, the situation presents challenges that could redefine trade dynamics in North America.
Original Source: globalnews.ca
