Canada, China, Mexico fight back as tariffs imposed
The Canadian Prime Minister has labelled tariffs imposed by Donald Trump “dumb”, as he announces retaliatory action.
Canadian Prime Minister Justin Trudeau has fired back at Donald Trump, with retaliatory tariffs on $US150 billion ($241 billion) of American goods, while accusing the US President of starting a trade war.
Trudeau said Trump’s 25 per cent tariffs on Canada, which came into force on Tuesday (AEDT), were a “dumb thing to do” and Canada would respond in the same way.
China and Mexico also lashed out after Trump’s levies against them were enacted on Tuesday.
China announced 10-15 per cent hikes to import levies on American agricultural and food products and put 25 US businesses under export and investment restrictions on national security grounds.
Mexican President Claudia Sheinbaum said her government would respond with tariff and non-tariff measures.
Trudeau said Trump’s tariffs would “first and foremost harm American families” and put jobs at risk.
“Today the United States has launched a trade war against Canada, its closest partner and ally, its closest friend,” he said.
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At the same time, he said the US was working positively with the “murderer and dictator”, Russian president Vladimir Putin.
“Make it make sense,” he said.
In late January, the Wall Street Journal said Trump would be launching “the dumbest trade war in history” if he went ahead.
“It’s not in my habit to agree with the Wall Street Journal, but Donald, they point out that even though you’re a very smart guy, this is a very dumb thing to do,” Trudeau said.
“Canadians are reasonable, and we are polite, but we will not back down from a fight, not when our country and the wellbeing of everyone in it is at stake.”
Canada’s retaliatory tariffs of 25 per cent against $155 billion in trade came into effect at the same time as Trump’s identical level on imports to the US.
Canada will first hit $US30 billion of goods immediately and the remaining $US125 billion in 21 days.
Not long after Trudeau’s address, Trump struck back again with a further threat against America’s northern neighbour.
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“Please explain to Governor Trudeau, of Canada, that when he puts on a Retaliatory Tariff on the US, our Reciprocal Tariff will immediately increase by a like amount!” Trump wrote on his Truth Social platform.
The reference to “governor” was taken to relate to Trump’s suggestions that Canada should become the US’s 51st state.
Trump on Tuesday declared that Mexico, along with Canada and China, had failed to do enough to stem the flow of the deadly fentanyl opioid and its precursor chemicals into the US.
Trudeau, who will step down as Prime Minister after Canada’s ruling Liberal Party chooses a new leader on Sunday, warned Canadians that tough times were coming.
Economists say Canada, which sends 75 per cent of all exports to the US, will plunge into a recession unless the tariffs are lifted quickly. But they also say it will affect US citizens, given how tightly the two economies are connected.
Canada’s two most populous provinces, Quebec and Ontario, are taking US alcohol off the shelves of provincially run liquor stores and Canadian sports fans have begun booing US teams and using the hockey reference “Elbows Up” as a catchphrase for beating Americans.
“We’re going to choose to try to buy Canadian products and forgo bourbon and other classic American products. And yeah, we’re probably going to keep booing the American anthem,” Trudeau said.
“But let me tell Americans, we’re not booing you, we’re not booing your teams, we’re not booing your players. We’re booing a policy that is designed to hurt us. And we’re insulted and we’re angry… we’re going to fight and we’re going to win.”
China’s foreign ministry spokesperson Lin Jian said the country had never succumbed to bullying or coercion, and that “trying to exert extreme pressure on China is a miscalculation and a mistake”.
China’s latest retaliatory measures came as the extra 10 per cent duty Trump had last week threatened the world’s second-largest economy with came into force on Tuesday. Beijing now faces a cumulative 20 per cent tariff in response to what the White House considers Chinese inaction over drug flows.
China has accused the White House of “blackmail” over its tariff hike, saying it had some of the world’s toughest anti-drug policies.
Analysts say Beijing still hopes to negotiate a truce with the Trump administration, deliberately setting its tariff hikes below 20 per cent to leave its negotiators room to hash out a deal. But each escalation reduces the chance of a rapprochement.
