Trump has divided North America: Canada and Mexico impose retaliatory tariffs on US goods

Canada and Mexico have imposed tariffs on American goods in response to President Donald Trump's massive tariffs. On February 2, businesses and consumers in both countries were wondering how a new trade war might affect them, writes Associated Press.

Photo: Oasisamuel | Dreamstime.com

Canada will impose a 4 percent tax on U.S. imports starting Feb. 25. The list includes C$30 billion ($20 billion) worth of beverages, cosmetics and paper products. A second list of goods is due to be released soon, including cars, trucks, steel and aluminum, certain fruits and vegetables, beef, pork, dairy products, aerospace products and other goods. Their combined value is estimated at C$125 billion ($85 billion).

“We can play this game as long as they want,” Trump countered, saying he planned to discuss the situation with his Canadian and Mexican counterparts on February 3.

Mexico has so far only announced that it will introduce retaliatory duties, but has not specified their size or the list of goods.

On the subject: Trump Threatens to Revoke Visas for Students Who Attended Pro-Palestinian Rallies

Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum spoke on February 1 after the Trump administration imposed new tariffs: 25% on goods from Canada and Mexico, a reduced 10% tax on Canadian oil, and 10% on imports from China.

Trudeau's office said Canada and Mexico had agreed to "strengthen the strong bilateral relationship" between their countries. Canadian officials had been in close contact with their Mexican counterparts about the matter, but a senior Canadian official said he would not claim the tariffs had been agreed upon.

"Now is the time to choose products made here in Canada," Trudeau wrote on Feb. 2 in X. "Check the labels."

Canada is the largest export market for 36 U.S. states, and Mexico is the U.S.'s largest trading partner.

Canada and Mexico still imposed the tax, despite Trump threatening to raise tariffs if retaliatory levies were imposed on American goods.

"We certainly don't want to escalate, but we will defend Canada," Trudeau said late on Feb. 1.

Several provincial governments, including Ontario, British Columbia, Quebec, Manitoba and Nova Scotia, planned to remove American liquor brands from government-run stores.

For example, the Liquor Control Board of Ontario sells nearly $1 billion worth of American wine, beer, spirits and soft drinks each year, Ontario Premier Doug Ford said Sunday.

The American products were scheduled to be removed from shelves and catalogues as early as February 4. Since the Liquor Control Board of Ontario is the province's sole wholesale supplier of alcohol, its actions will prevent Ontario restaurants and stores from ordering or restocking American products.

On social media, people shared suggestions for replacing American goods.

Trudeau spoke directly to Americans, saying these taxes "will have real consequences for you."

Trump on February 2 criticized Canada's trade surplus with the United States, saying that without that surplus, Canada would cease to exist as a viable country: "Harsh but true! That's why Canada should be our dear 51st state. Much lower taxes and much better military protection for Canadians — AND NO TAXES!"

Canadians feel betrayed. Trudeau reminded Americans that Canadian troops fought alongside them in Afghanistan and helped with many disasters in the U.S., including the California wildfires and Hurricane Katrina.

Canadian hockey fans booed the U.S. national anthem at two National Hockey League games on Feb. 1. The booing continued at an NBA game in Toronto on Feb. 2, where the Toronto Raptors played the Los Angeles Clippers.

One fan, Joseph Chua, who works in the import industry, said he would feel the impact of the toll "directly".

"I have always stood up during both anthems and taken off my hat to show respect for the main musical symbol of the United States, but today we are a little upset about the situation," he said, noting that he will now stop buying American goods.

In Mexico, public statements about the tax threat boil down to the government being prepared for new challenges and ensuring respect for the country.

In 2019, Mexico dodged Trump’s tax threat by adding immigration enforcement to the newly formed National Guard. But this time, accusations that the Sheinbaum administration has ties to criminal gangs have forced her to respond more forcefully.

She called on the United States to deal with its own drug and gun problems and not to interfere in Mexico. Trump said he was imposing tariffs to stop the flow of illegal immigrants and drugs across the southern and northern borders of the United States.

On the streets, Mexicans tried to make sense of the statements made.

At a small coffee shop downtown, 40-year-old salesman Carlos Barona said he was not concerned about Trump's decision and that he trusted the Sheinbaum administration to act.

“If we survived the pandemic and everything it brought us, I think we will survive this too,” he noted.

In the border city of Mexicali, across from Calexico, California, some residents are worried about the broader implications of the trade war.

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Driver Alejandro Acosta crosses the border weekly in his truck delivering vegetables to American companies. He fears that American businesses in the Mexicali Valley will no longer want to operate in Mexico and will move to the United States.

"If they raise taxes, there might be fewer jobs," he suggested.

The trade war comes as Canada begins its election campaign. Trudeau's Liberal Party will announce a new leader on March 9.

"Canada will not bow to a bully," summed up Mark Carney, who is considered the leading contender for the post.

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