Canada joined Mexico in announcing retaliatory tariffs against the United States, after the U.S. slapped across-the-board duties on goods coming from Mexico.
Mexican President Claudia Sheinbaum said on Saturday (February 1, 2025) she ordered her Economy Minister to implement tariff and non-tariff measures to defend her country’s interests. Meanwhile Prime Minister Justin Trudeau said Canada will retaliate against President Donald Trump’s new tariffs by imposing 25% tariffs U.S. goods from drinks to appliances
Also read | China denounces Trump tariff: ‘Fentanyl is America’s problem’
In a lengthy post on X, Ms. Sheinbaum said her government sought dialogue rather than confrontation with its northern neighbor, but that Mexico had been forced to respond in kind.
“I’ve instructed my economy minister to implement the plan B we’ve been working on, which includes tariff and non-tariff measures in defense of Mexico’s interests,” Ms. Sheinbaum posted, without going into detail on what U.S. goods her government will target.
The United States is by far Mexico’s most important foreign market, while Mexico in 2023 overtook China to become the top destination for U.S. exports.
Mexico has been preparing possible retaliatory tariffs against imports from the U.S., ranging from 5% to 20%, on pork, cheese, fresh produce, as well as manufactured steel and aluminum, according to sources familiar with the matter. The auto industry would initially be exempt, they said.
U.S. exports to Mexico accounted for more than $322 billion in 2023, Census Bureau data showed, while the U.S. imported more than $475 billion worth of Mexican products.
In her post, Ms. Sheinbaum also rejected as “slander” the allegation by the White House that drug cartels have an alliance with the Mexican government, a point used by the administration of President Donald Trump to explain why it had imposed the tariffs.
Trump said the tariffs against Mexico were due to the country’s failure to stop fentanyl getting into the United States as well as what he describes as uncontrolled migration.
Ms. Sheinbaum also touted her government’s record since she took office in October – seizing 20 million doses of deadly synthetic opioid fentanyl, in addition to detaining over 10,0000 individuals tied to drug trafficking.
Coming weeks could be difficult for Canada: Trudeau
As relations between the long-time allies who share the world’s longest land border reach a new low, Trudeau told a news conference he was slapping tariffs on C$155 billion ($107 billion) of U.S. goods. Those on C$30 billion will take effect on Tuesday, the same day as Trump’s tariffs, and duties on the remaining C$125 billion in 21 days, he said.
The Canadian leader said tariffs would include American beer, wine and bourbon, as well as fruits and fruit juices, including orange juice from Trump’s home state of Florida. Canada would also target goods including clothing, sports equipment and household appliances.
Mr. Trudeau said the coming weeks would be difficult for Canadians but that Americans would also suffer from Trump’s actions.
“Tariffs against Canada will put your jobs at risk, potentially shutting down American auto assembly plants and other manufacturing facilities,” Trudeau said, addressing U.S. citizens during a press conference in Ottawa.
“They will raise costs for you, including food at the grocery store and gas at the pump.”
Canada is considering non-tariff measures, potentially relating to critical minerals, energy procurement and other partnerships, Trudeau said.
The 9,000-km (5,600-mile) U.S.-Canada border handles over $2.5 billion in trade a day, especially in energy and manufacturing, according to Canadian government data from 2023.
In 2023, Canada exported close to C$550 billion worth of goods and services to the U.S., or more than three-fourths of its total exports. Energy accounted for 30% and manufacturing contributed around 15% to exports south of the border.
Exports to the U.S. accounts for roughly 17.8% of Canadian gross domestic product and more than 2.4 million jobs in Canada.
The tariffs hit Canada as it deals with a political crisis and a leadership race within Trudeau’s Liberal Party.
Facing low approval ratings, Mr. Trudeau has said he will resign after nine years in office once a new party leader is chosen. The opposition Conservatives could win the next election by a thumping majority, according to recent opinion polls.
Flanked by his foreign affairs and finance ministers a somber Mr. Trudeau recalled the years of bilateral relations between the two countries.
“From the beaches of Normandy to the mountains of the Korean Peninsula, from the fields of Flanders to the streets of Kandahar, we have fought and died alongside you during your darkest hours,” he said. “We’ve built the most successful economic, military and security partnership the world has ever seen.”
Mr. Trudeau encouraged Canadians to buy Canadian products and vacation at home rather than in the U.S.
“We didn’t ask for this but we will not back down,” he said.
Published – February 02, 2025 07:18 am IST