Trump's trade conflict with allies triggers response from Canada and Mexico

Canada and Mexico intend to react against tariffs imposed by President Donald Trump on Saturday, sparking a trade war that is expected to disrupt global business and upset financial markets.

On Saturday, President Trump announced tariffs of 25% on Canada and Mexico and 10% on China. Canadian energy products will be tariffed at 10%.

“Today’s tariff announcement is necessary to hold China, Mexico, and Canada accountable for their promises to halt the flood of poisonous drugs into the United States,” the White House said Saturday evening in a post on X.

So yet, Mexico has just stated that it will levy retaliatory tariffs, without specifying the rate or items.

On Saturday evening, Trudeau retaliated to the tariffs by declaring that his country will impose 25% duties on $155 billion Canadian dollars (about $107 billion USD) in US imports. The prime minister stated he hasn't spoken to Trump since his inauguration.

Canada and Mexico announced retaliatory duties on American products in response to President Donald Trump's broad tariffs, and businesses and consumers in both nations questioned Sunday how the new trade war will effect them.

Canada imposed 25% taxes on American imports beginning February 4, including drinks, cosmetics, and paper products totaling 30 billion Canadian dollars ($20 billion). A second list of commodities was to be revealed soon, which included passenger automobiles, trucks, steel and aluminum products, some fruits and vegetables, meat, pork, dairy products, and other items. The products were believed to be valued 125 billion Canadian dollars ($85 billion).

Trump said he implemented the tariffs under the International Emergency Economic Powers Act (IEEP) due to the “major threat of illegal aliens and deadly drugs killing our Citizens, including fentanyl.”

The trade war occurs as Canada enters its electoral campaign. Trudeau's Liberal Party will name a new leader on March 9, with a spring election looming.