Canada and Mexico impose retaliatory tariffs on U.S. goods
Canada and Mexico have both enacted retaliatory tariffs on U.S. goods in response to former President Donald Trump’s decision to impose tariffs on imports from these countries, sparking a trade war.
Canada is targeting $30 billion CAD (around $20 billion USD) in U.S. imports with a 25% tariff, set to take effect on February 4. The initial list includes products such as beverages, cosmetics, and paper goods. A second wave of tariffs, aimed at $125 billion CAD (about $85 billion USD) in U.S. goods, will follow after public consultation. This second phase could include passenger vehicles, trucks, steel and aluminum products, fruits, vegetables, beef, pork, dairy, and more.
A senior Canadian government official revealed that the purpose of these tariffs is partly to sway certain Republican figures in the U.S., though it’s unclear whether prominent figures like Elon Musk or Tesla will be affected in the second phase.
Mexico has not yet specified the tariff rates or which goods will be targeted but has confirmed retaliatory measures are coming.
Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum discussed the issue over the phone after Trump’s administration imposed broad tariffs — 25% on goods from Canada and Mexico, and 10% on Chinese imports. While it is unclear if Canada and Mexico are coordinating their responses, Canada has emphasized its commitment to strengthening bilateral relations with Mexico.
Trudeau tweeted that now is the time to "choose products made right here in Canada," and over the weekend, he encouraged Canadians to avoid buying U.S. products or vacationing in the U.S. In the U.S., Canada is the largest export market for 36 states, while Mexico is its top trading partner.
Despite Trump’s warning to increase tariffs further if retaliatory measures are enacted, Canada and Mexico are standing firm. “We’re certainly not looking to escalate but we will stand up for Canada,” Trudeau stated on Saturday.
On the ground, provinces like Ontario, British Columbia, and Nova Scotia are removing American liquor brands from government-run stores. Ontario Premier Doug Ford announced that the Liquor Control Board of Ontario (LCBO), which sells nearly $1 billion worth of American alcoholic beverages annually, would begin pulling American products from its shelves starting Tuesday.
In addition to official actions, people are already taking to social media to promote alternatives to American goods, as they look for ways to respond to Trump’s tariffs.
