TORONTO — In response to the escalating trade tensions initiated by the U.S. administration under President Donald Trump, both the Canadian Prime Minister and the President of Mexico have announced plans for retaliatory tariffs on American goods. This move comes after Trump implemented significant tariffs on imports from Canada, Mexico, and China, which sparked a trade confrontation between the nations.
Canada’s government is set to impose tariffs on approximately $30 billion Canadian (around $20 billion USD) worth of U.S. goods, applying a 25% tariff on items such as beverages, cosmetics, and paper products starting on February 4. Furthermore, a subsequent list targeting $125 billion Canadian (about $85 billion USD) worth of American imports is expected to be released shortly and will undergo public consultations before its implementation. This list may include passenger vehicles, trucks, steel and aluminum, various fruits and vegetables, as well as beef, pork, and dairy products.
A high-ranking official from the Canadian government explained during a press briefing that the aim of this list is to rally certain Republican voices in support of the president, although it remains unclear whether figures like Elon Musk and Tesla will be affected in the next phase. Meanwhile, Mexico has only confirmed its intention to impose retaliatory tariffs without disclosing any specific rates or targeted products.
Discussions between Prime Minister Justin Trudeau and President Claudia Sheinbaum of Mexico took place on Saturday, soon after the U.S. tariffs were enacted — a sweeping 25% on goods from Canada and Mexico, with a 10% duty on Canadian oil and Chinese imports. Despite this, there is no clear indication that Canada and Mexico are synchronizing their strategies or will operate cooperatively in the days ahead.
In an official statement, Trudeau’s office mentioned the aim to strengthen the existing robust bilateral relations between Canada and Mexico. Canadian officials are engaging in thorough dialogues with their Mexican counterparts, though a senior Canadian source refrained from categorically stating that their tariff responses are aligned.
Trudeau took to social media, encouraging Canadians to support domestic products, stating that this is the right moment to choose Canadian-made items. He even suggested that Canadians consider avoiding U.S. products and vacations in the United States. Notably, Canada serves as the largest export market for numerous U.S. states, while Mexico holds the title of the U.S.’s largest trading partner.
Despite Trump’s threats of further increasing duties if retaliatory tariffs were enacted, Canada and Mexico moved forward with their decisions. Trudeau emphasized, “We certainly are not looking to escalate, but we will stand up for Canada.” At the local level, certain provinces, including Ontario, British Columbia, and Nova Scotia, are preparing to remove American liquor brands from government-operated stores. Ontario Premier Doug Ford highlighted that the Liquor Control Board of Ontario generates nearly $1 billion in annual sales from American alcoholic beverages.
“This will no longer be the case,” remarked Ford in an announcement. “Starting Tuesday, we are discontinuing the sale of American products at LCBO stores.” The board, being the sole wholesaler of alcohol in Ontario, will also eliminate American items from its catalog, preventing local restaurants and retailers from replenishing their American stock.
Beyond governmental actions, citizens are actively seeking alternatives to American goods, with many sharing suggestions on social media platforms. Trudeau directly addressed Americans, warning them that the new tariffs “will have real consequences for you.”
Trump reacted to Canada’s response by targeting the trade surplus Canada has with the U.S., implying that without it, Canada would be unsustainable as a nation. He provocatively suggested that Canada consider becoming the U.S.’s 51st state, promising lower taxes and enhanced military protection, all while eliminating tariffs.
Canadians have expressed a profound sense of disappointment regarding their relationship with the United States, once deemed allies. Trudeau reminded Americans that Canadian military personnel stood alongside them in conflicts such as Afghanistan and assisted during numerous crises, like the wildfires in California and Hurricane Katrina.
During two National Hockey League games on Saturday, Canadian hockey fans voiced their sentiments by booing the American national anthem. In contrast, Mexico has taken a notably different public stance toward Trump’s tariff threats, primarily stating that the government is ready for any forthcoming challenges while emphasizing the importance of respect for Mexico.
Previously, in 2019, Mexico managed to avert tariffs by linking immigration control to the duties of its newly formed National Guard. However, under the current administration, Sheinbaum has felt compelled to respond more directly, calling for the U.S. to address its internal issues related to drugs and arms rather than intervening in Mexican affairs. Trump has defended the tariffs as necessary tools to curb illegal immigration and drug trafficking at both the southern and northern U.S. borders.
Scholars and diplomats in Mexico criticized Trump’s “retaliation clause” that suggested he could raise tariff levels further if retaliatory measures were implemented. Martha Bárcena, a former Mexican ambassador to the U.S., remarked on the severity of the official U.S. statement against Mexico, emphasizing its uncommon harshness. Gabriela Siller, an economic analysis director at the Banco Base, warned that the tariffs could lead to a potential economic crisis in Mexico, jeopardizing key industries and increasing unemployment and prices.
In response to this situation, Siller indicated that the Mexican government may need to implement counter-cyclical fiscal policies to prevent economic downturns and would likely face increasing debt. Looking ahead, the government would have to explore new trade agreements while noting that its over-reliance on the U.S. market complicates rapid diversification efforts.
Following Trump’s electoral victory in November, Canadian officials indicated that the focus should be on Mexico rather than Canada when it comes to trade issues and border matters—a viewpoint echoed by some government leaders. Premier Doug Ford reiterated to the American public that “Canada is not the problem. The issue lies with the Mexican border and China.”
As Canada enters an election cycle, with Trudeau’s Liberal Party expected to announce a new leader on March 9 and a spring election on the horizon, the trade war presents a significant backdrop to these political developments. Mark Carney, considered a leading contender to succeed Trudeau, asserted that “Canada will not bow down to a bully.”
