Canada said it will begin enforcing retaliatory tariffs on US imports valued at $107 billion (155 billion Canadian dollars) on Tuesday, in response to US President Donald Trump’s refusal to back down from imposing heavy duties on its neighbors.
To counter the high tariffs imposed by the United States, outgoing Canadian Prime Minister Justin Trudeau declared that, should the Trump administration carry out its plan, the country would impose 25% tariffs on US goods valued at 30 billion Canadian dollars starting on Tuesday, according to news agency Reuters.
According to Trudeau, the remaining retaliatory tariffs on US imports valued at 125 billion Canadian dollars will be lifted in 21 days.
“Our tariffs will remain in place until the US trade action is withdrawn, and should US tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures,” Trudeau was quoted as saying by Reuters.
Mexico, the other country in North America preparing for the blow of US tariffs, along with Canada, announced on Monday that it had backup plans in case Trump moves forward with his tariff intentions. President Claudia Sheinbaum of Mexico stated that her nation was ready in case the United States imposed tariffs on it on Tuesday, but she did not provide many specifics.
According to Sheinbaum, “We have a plan B, C, D,” as reported by Reuters.
If the US moves forward with its intentions, China, another large country that has been subjected to the high tariffs imposed by the US, has threatened to respond as well. According to a Reuters story, China’s Commerce Ministry reaffirmed that the US was attempting to “bully” them over fentanyl shipments.
This comes after the US threatened China last week with an extra 10% tariff that would go into effect on Tuesday, bringing the US’s total penalties against China to 20%.
The leaders of Canada and Mexico made their remarks while the US President Donald Trump’s deadline of March 4 to slap heavy tariffs on both countries has already passed.
Donald Trump declared duties on imports from Canada and Mexico, two of its largest trading partners, accusing them of failing to do enough to combat drug trafficking and illegal immigration. Originally scheduled to take effect in February, the tariffs were postponed until March 4.
Trump stated on Monday that there was “no room left” for the two countries to avoid the tariffs, clearing up any confusion on their chances of doing so. The 25% tariffs he has planned for Canada and Mexico are “all set” to go into force, he told reporters on Monday.
