In a swift response to the United States’ imposition of a 25 percent tariff on imports from Canada and Mexico, both countries have announced significant retaliatory measures, escalating tensions and potentially igniting a trade war among the North American neighbors.
Canada Strikes Back with Tariffs
Canadian Prime Minister Justin Trudeau declared that Canada will impose a 25 percent tariff on US goods valued at 155 billion Canadian dollars (approximately $107 billion). Tariffs on goods worth 30 billion Canadian dollars are set to take effect on February 4, with the remaining tariffs to be implemented within the following 21 days.
“This move by President Trump is a complete betrayal of the historic bond between our countries,” said British Columbia Premier David Eby. “It’s a declaration of economic war against a trusted ally.”
Eby announced additional measures, including directing the British Columbia Liquor Distribution Branch to immediately cease purchasing American liquor from certain US states and removing their top-selling brands from provincial liquor store shelves. The province will also seek to exclude US products from government procurement contracts.
Mexico Announces Countermeasures
In Mexico, President Claudia Sheinbaum declared that her government would enact countermeasures against the US tariffs. “Mexico will retaliate against tariffs imposed by President Trump with tariffs and other measures of our own,” she stated.
US Confirms Tariff Timeline
The White House confirmed that the tariffs are scheduled to go into effect “on or after 12:01 a.m. Eastern time on February 4, 2025.” The order signed by President Trump also includes a mechanism to escalate tariffs if Canada and Mexico retaliate, potentially deepening the trade dispute, according to reports from the Associated Press.
Trade Relations at Stake
The United States is heavily reliant on imports from its largest trading partners—Mexico, Canada, and China. In the first 11 months of 2024, the US imported approximately $466.6 billion worth of goods from Mexico, $377.2 billion from Canada, and $401.4 billion from China, based on data from the US Census Bureau.
The unfolding trade tensions among these neighboring countries are raising concerns about the potential impact on the global economy, with observers watching closely to see how the situation develops in the coming weeks.
