The US’s decision to impose a 25 percent tariff on imports from Canada and Mexico has sparked swift retaliation from both countries, potentially triggering a trade war between the North American neighbors.
In response, Canadian Prime Minister Justin Trudeau announced that Canada would impose a 25 percent tariff on US goods worth C$155 billion ($107 billion). Of this, tariffs on goods worth C$30 billion will take effect on February 4, while tariffs on the remaining C$125 billion will be implemented within 21 days.
British Columbia Premier David Eby also condemned the US tariffs, opining that “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.”
He announced measures including directing the BC Liquor Distribution Branch to immediately stop buying American liquor from “red states” and removing the highest-selling brands from those states from the shelves of the province’s liquor stores, along with seeking to exclude US products from government purchases.
In Mexico, President Claudia Sheinbaum announced that her government would also take countermeasures, saying Mexico will retaliate against tariffs imposed by US President Donald Trump with tariffs and other measures of its own.
The White House confirmed the tariffs are set to go into effect “on or after 12:01 a.m. eastern time on February 4, 2025.” The order signed by Trump also includes a mechanism to escalate tariffs if Canada and Mexico retaliate, potentially deepening the trade dispute, reported the Associated Press.
The US is heavily reliant on imports from its three largest trading partners: Mexico, Canada and China. In the first 11 months of 2024, the US imported about $466.6 billion from Mexico, $377.2 billion from Canada, and $401.4 billion in goods from China, according to data from the US Census Bureau.
