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Home » Trump threatens further tariff hikes after Canada retaliates | Trade War News
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Trump threatens further tariff hikes after Canada retaliates | Trade War News

userBy userMarch 4, 2025No Comments3 Mins Read
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The US president posts a warning on social media after Canada’s PM Trudeau condemned the “silly” trade war.

US President Donald Trump warned Canada that it would escalate a trade war after Prime Minister Justin Trudeau announced retaliatory tariffs on US goods.

Trump’s 25% tariff on imports from Mexico and Canada came into effect Tuesday, urging Trudeau to announce retaliatory tariffs on more than $100 billion in American goods that will take effect over 21 days.

The US President said of Truth Social, his social media platform, “Explain that if we place retaliatory tariffs on the US, our mutual tariffs will soon increase as well!”

Trump has repeatedly introduced the Canadian Prime Minister as the Canadian “governor” in recent weeks.

Trudeau told reporters in Ottawa on Tuesday that Trump’s “silly” trade war was “motivated by his desire to see a complete collapse of the Canadian economy.

“Now, first of all, it never happens,” the Canadian leader said. “But he can damage the Canadian economy… but he will soon learn that American families will want to know and hurt people on both sides of the border.”

Vina Najibla, vice president of research and strategy at the Asia-Pacific Foundation in Canada, told Al Jazeera that the trade war would “harm consumers, businesses and the US economy” within “a few weeks.”

Canada said it would challenge US measures through the US trade organisation at the World Trade Organization and the US-Canada trade agreement.

“Canadians are reasonable and we are polite, but we will not step back from the fight,” said Trudeau, who will step down as prime minister after the liberals chose a new leader on Sunday.

Ontario Premier Doug Ford said he would issue a 25% export tax on electricity sold to the US, and that if US tariffs continue, it could cut completely thereafter. In 2023, Ontario housed 1.5 million homes in Michigan, New York and Minnesota.

“No justification”

Meanwhile, Mexican President Claudia Sheinbaum joined Canada and China. This hit Tuesday with doubled the 20% goods obligation, but promised to deal with the Trump administration’s tariff hike.

“There is no motivation or reason to support this decision that affects our people and our country,” she said at a daily press conference in Mexico City that she will be unveiling US products that will be targeted by Mexico on Sunday.

Sinbaum was troubled by the White House “factsheet” released Monday, reiterating claims that Mexican drug trafficking continues due to “exhaustive relations” with the government, and denies the allegations as “aggressive, honourable, no support.”

Recently, the Mexican government seized more than a ton of opioid fentanyl, dismantled 329 methamphetamine labs, and handed over the 29 drug cartel figures to the US last week.

Trump also said he is taking action to combat fentanyl trafficking through the US northern border, accusing Ottawa of not doing enough to stave off the flow of drugs and its precursor chemicals to the US. Trudeau said the claim was “completely false, completely unfair, completely wrong.”

Meanwhile, Beijing announced it would respond to tariffs of up to 15% across the range of US farm exports, expanding the number of US companies subject to export controls and other restrictions.


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