Canada Retaliates Against US Tariffs
Pavitra Shetty
Published on February 4, 2025, 13:54:45
In response to the Trump administration’s decision to impose a 25% tariff on Canadian goods, Prime Minister Justin Trudeau has announced retaliatory measures, including a 25% levy on US imports, and is preparing to take legal action against the United States.
US President Donald Trump acknowledged that the trade dispute has strained relations between the two neighboring nations. His administration recently imposed major tariffs on Mexico, Canada, and China, demanding stronger measures to curb fentanyl trafficking and illegal immigration.
Beginning February 18, Canada will implement 25% tariffs on over $155 billion worth of US products, including orange juice, peanut butter, beer, motorcycles, and cosmetics. Additionally, Canada is taking legal steps under international trade agreements, challenging Trump’s tariffs as a violation of WTO rules.
A senior Canadian government official stated that Trump’s move is illegal under their free trade agreement, adding that more tariff hikes could be announced in the coming weeks. Prime Minister Trudeau is urging Canadians to support domestic products, emphasizing the economic impact across North America.
Trump defended the tariffs, claiming they are necessary to protect the US economy and national security. In a social media post, he wrote, "WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!), BUT WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID."
Mexico’s President Claudia Sheinbaum has also announced retaliatory tariffs, criticizing the US for failing to address domestic drug addiction issues. Meanwhile, China has pledged to defend its economic interests and is preparing a lawsuit with the World Trade Organization (WTO) to challenge Trump’s tariffs.
The ongoing tariff war has caused uncertainty among North American businesses, disrupting trade agreements and raising concerns about economic stability. Canada remains the largest export market for 36 US states, with Mexico being the top trading partner. As the situation unfolds, global markets are closely watching for further developments in the escalating trade conflict.
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