Trump Issues Warning of Further Tariff Increases Following Canada's Retaliation
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Synopsis
US President Donald Trump has issued a warning to Canada regarding the potential escalation of trade tensions after Prime Minister Justin Trudeau announced retaliatory tariffs on US imports. The situation highlights the ongoing trade conflict and its implications for economies on both sides of the border.
Key Takeaways
- Trump threatens increased tariffs in response to Canadian actions.
- Trudeau announces 25% tariffs on $155 billion of US goods.
- Canada plans to challenge US tariffs at the WTO.
- Ontario's Premier Ford threatens to impose an export tax on electricity.
- Mexico stands in solidarity with Canada against US tariffs.
Washington, March 5 (NationPress) US President Donald Trump has cautioned Canada of his intent to intensify the trade conflict after Prime Minister Justin Trudeau declared retaliatory tariffs on American products.
Trump's statement followed Trudeau's announcement on Tuesday that Canada would impose 25 percent tariffs on $155 billion worth of US goods.
On the same day, President Trump shared on his social media platform, Truth Social, "Please explain to Governor Trudeau, of Canada, that when he enacts a Retaliatory Tariff on the US, our Reciprocal Tariff will immediately rise by an equivalent amount!"
Trump's 25 percent tariffs on imports from Mexico and Canada became effective on Tuesday, leading Trudeau to unveil plans for retaliatory tariffs on over $100 billion of American goods, set to take effect within 21 days.
In recent weeks, Trump has repeatedly referred to the Canadian Prime Minister as the "Governor" of Canada, suggesting that the nation should join the US as its 51st state.
Trudeau expressed to reporters in Ottawa that Trump's "foolish" trade war was fueled by a desire to witness a total collapse of the Canadian economy, which would facilitate the annexation of Canada.
"First of all, that’s never going to happen," stated the Canadian leader.
"However, he can inflict damage on the Canadian economy... but he will soon learn, as American families will discover, that this will impact individuals on both sides of the border."
Canada plans to contest the US measures at the World Trade Organization and through the US-Mexico-Canada Trade Agreement.
"Canadians are reasonable and polite, yet we will not retreat from a challenge," asserted Trudeau, who is set to resign as Prime Minister following the selection of a new leader by the governing Liberal Party on Sunday.
Ontario's premier, Doug Ford, announced he would impose a 25 percent export tax on electricity sold to the US and may cease exports altogether if the US tariffs continue. In 2023, Ontario supplied power to 1.5 million homes in Michigan, New York, and Minnesota.
In the meantime, Mexican President Claudia Sheinbaum aligned with Canada and China—which also faced a doubling of duties to 20 percent on Tuesday—in pledging to retaliate against the tariff increases instituted by the Trump administration.
"There is no motive or justification for this decision that will negatively impact our people and nations," she remarked during a daily press briefing in Mexico City, indicating that she would disclose targeted US products on Sunday.
Sheinbaum criticized a White House "fact sheet" released on Monday, which reiterated claims that Mexican drug trafficking persists due to an "intolerable relationship" with the government, labeling the allegations as "offensive, defamatory, and unsupported".
Recently, the Mexican government confiscated over a ton of the opioid fentanyl, dismantled 329 methamphetamine labs, and extradited 29 cartel figures to the US last week.
Trump also stated he is taking measures to address fentanyl trafficking through the US's northern border, accusing Ottawa of inadequate action to mitigate the drug's entry into the US. Trudeau countered that the assertion was "entirely false, unjustified, and bogus".
Simultaneously, Beijing revealed plans to respond with tariffs reaching up to 15 percent on various US agricultural exports and extended the list of US companies facing export controls and other limitations.
