The United States' recent decision to impose a 25 percent tariff on imports from Canada and Mexico has ignited swift and strong retaliation from both nations, raising concerns about a potential trade war among North American neighbors.
In a decisive move, Canadian Prime Minister Justin Trudeau announced that Canada will reciprocate with a 25 percent tariff on US goods totaling C$155 billion ($107 billion). Of this, tariffs on goods worth C$30 billion will come into effect on February 4, while the remaining C$125 billion will follow within 21 days.
British Columbia Premier David Eby condemned the US tariffs, stating, \"President Trump's 25 percent tariffs are a complete betrayal of the historic bond between our countries and a declaration of economic war against a trusted ally.\" Eby revealed measures including instructing the BC Liquor Distribution Branch to halt purchases of American liquor from \"red states\" and removing top-selling brands from those states from provincial liquor store shelves. Additionally, the province will seek to exclude US products from government procurement.
Mexico is also taking a stand. President Claudia Sheinbaum declared that her government will implement countermeasures against the tariffs imposed by US President Donald Trump, including tariffs and other retaliatory actions.
The White House confirmed that the tariffs are set to activate \"on or after 12:01 a.m. eastern time on February 4, 2025.\" The order signed by Trump includes a mechanism to escalate tariffs if Canada and Mexico retaliate, potentially deepening the trade dispute, according to the Associated Press.
The US economy is significantly dependent on imports from its three largest trading partners: Mexico, Canada, and China. In the first 11 months of 2024, the US imported approximately $466.6 billion from Mexico, $377.2 billion from Canada, and $401.4 billion in goods from China, as reported by the US Census Bureau.
This escalating situation underscores the fragile nature of international trade relationships and highlights the profound economic interdependencies that can lead to broader geopolitical tensions.
Reference(s):
cgtn.com
