Canada, Mexico hit back at Trump’s new trade tariffs

In response to President Donald Trump’s announcement of new tariffs, both Canada and Mexico have vowed to retaliate. Mexico’s President, Claudia Sheinbaum, sharply rejected Trump's claims of an alliance with drug cartels, calling them "slander."

She insisted that the problems should be addressed through diplomatic negotiations rather than imposing tariffs. Mexico is preparing to implement retaliatory tariffs of 25% on US goods, which will include a wide range of American exports, Caliber.Az reports via Western media outlets.

Canadian Prime Minister Justin Trudeau also condemned the tariffs, asserting that his government would respond with 25% tariffs on $155 billion worth of US imports. The measures will target products like beer, wine, bourbon, fruits, vegetables, household goods, and more. Trudeau emphasized that tariffs are not an effective solution to the issues at hand, advocating instead for stronger collaboration between the two countries to tackle border security and drug trafficking.

The retaliatory actions from both countries come after Trump announced sweeping tariffs aimed at addressing concerns about illegal immigration and drug trafficking. The tariffs, which are set to begin on February 4, include a 25% tax on goods from Canada and Mexico and an additional 10% tax on Chinese imports. Canadian energy products will face a lower 10% tariff.

Trump had previously threatened such measures unless Canada and Mexico took stronger action on immigration and drug control. He argued that Mexican cartels were heavily involved in trafficking fentanyl, methamphetamine, and other dangerous drugs into the United States. Canada, for its part, has been criticized for a growing number of transnational organized crime groups involved in drug manufacturing.

The tariffs, which target some of the US's most important trading partners, are expected to have broad economic implications. Economists warn that the duties could raise prices on a variety of goods, including cars, lumber, and food. The auto industry, particularly, could face significant disruptions, as parts often cross the US-Mexico-Canada borders multiple times before final assembly.

In defence of the tariffs, the White House cited the need to hold China, Mexico, and Canada accountable for their failures in curbing the flow of drugs into the US. Trump himself posted on Truth Social, stating that the tariffs were enacted under the International Emergency Economic Powers Act due to the threat posed by illegal immigration and fentanyl.

Despite the potential short-term disruptions, experts believe that Trump may ease the tariffs if his key concerns, particularly regarding immigration and border security, are addressed by the affected countries.

By Khagan Isayev