Canada, Mexico Retaliate With Counter-Tariffs In Response To Trump's Order

After Donald Trump signed an order imposing broad tariffs on both countries, Mexico and Canada has announced retaliatory tariffs against the U.S.

On Saturday, both Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau made official announcements regarding their plans to impose retaliatory measures. This move sets the stage for a potential economic standoff with the United States, as the two countries, which are America's largest trading partners, respond to the sweeping tariffs imposed by President Donald Trump. The escalating tension signals the start of a significant trade dispute between the nations.

Sheinbaum announced that she had ordered her Secretary of the Economy to put into motion a "Plan B," which encompasses both tariff and non-tariff measures to safeguard Mexico's interests.

A few hours later, Trudeau declared that Canada would impose 25 percent tariffs on $106.5 billion worth of U.S. goods as a response to Trump's tariffs.

Sheinbaum also condemned the tariffs, writing on X, "We strongly reject the White House's accusations against the Government of Mexico, claiming ties to criminal organizations, as well as any attempts to interfere in our territory."

She went on in Spanish, "Mexico not only does not want fentanyl to reach the United States, it does not want it to reach anywhere."

She continued, "If the United States seeks to combat criminal groups involved in drug trafficking and violence, we must work together in a comprehensive way, but always based on the principles of shared responsibility, mutual trust, collaboration, and above all, respect for sovereignty, which is non-negotiable." She concluded, "Coordination, yes; subordination, no."

While Trudeau announced Canada would implement a 25% tariff on $155 billion worth of U.S. goods, he did not clarify whether the $155 billion figure was in Canadian or U.S. dollars. If it were in Canadian dollars, it would amount to approximately $106 billion in U.S. dollars.

In a Saturday evening press conference, Trudeau stated that the tariffs on American goods would begin with "immediate tariffs on $30 billion worth of goods starting Tuesday," coinciding with the day the U.S. plans to start imposing tariffs on Canadian products. He added that the remaining tariffs would be rolled out in approximately three weeks, allowing Canadian businesses and supply chains time to find alternatives.

Trudeau stated, "Similar to the American tariffs, our response will also be extensive and cover everyday items such as American beer, wine, and bourbon, fruits and fruit juices, including orange juice, as well as vegetables, perfume, clothing, and shoes." He added, "It will also include major consumer goods like household appliances, furniture, and sports equipment, as well as materials such as lumber and plastics, along with many other products."

Trudeau also underscored the deep-rooted history of the U.S.-Canada partnership, stressing the importance of collaboration between the two nations. He argued that "if President Trump is truly aiming to create a new 'golden age' for the United States, the more effective course would be to work together with Canada, rather than resorting to punitive measures against us." Trudeau acknowledged that the coming weeks would "be difficult" for both nations but emphasized that his primary "job" was to stand up for the interests and well-being of his citizens.

He stated, "We're not looking to escalate, but we will stand up for Canada, for Canadians, and for Canadian jobs." He added, "We will also continue to work closely with the United States to grow our economies. We can and will achieve things together, and that remains my primary focus."

He also encouraged Canadians to think about ways they could "do their part," like purchasing Canadian-made products instead of American-made ones and considering staying in Canada for their summer vacations.

Trump's executive order was a direct follow-up to his November pledge to impose tariffs on goods imported from the three countries. During his campaign, he had made it clear that he would introduce a broad tariff of up to 20% on imports from various nations, with a particular emphasis on China, setting a minimum 60% tariff on Chinese products. This move reflects his broader trade policy goals of protecting American industries and reducing trade deficits.