In response to new US tariffs on Mexican and Canadian goods, Mexico City and Ottawa will impose their own on American imports.
This is reported by AP and The Guardian.
Mexican President Claudia Sheinbaum said she would announce the U.S. goods that will be hit with new tariffs later this week, a pause that could mean Mexico is still hoping for a de-escalation in the trade war started by U.S. President Donald Trump.
Sheinbaum rejected a "fact sheet" published by the US White House that repeated accusations that Mexican drug traffickers continue their operations because of "untenable relations with the Mexican government".
The Mexican president called it “an insult and a slander”, citing her administration’s achievements in fighting Mexico’s drug cartels. She added that the tariffs Mexico will respond with “are in no way intended to start an economic or commercial confrontation”.
Canadian Prime Minister Justin Trudeau said he would respond with immediate 25% tariffs on 30 billion Canadian dollars ($20.7 billion) worth of American imports. Canada will target American beer, wine, bourbon, appliances and orange juice.
If Donald Trumpʼs executive order remains in effect after 21 days, Canada will extend increased import duties by another 125 billion Canadian dollars ($86.2 billion).
"Tariffs will disrupt an incredibly successful trading relationship," Trudeau stressed, adding that they would violate the free trade agreement between the United States, Mexico and Canada, which Trump signed during his first presidency.
Meanwhile, the US President Trump and his aides argue that raising tariffs on US imports from around the world will help "make America great again", allowing it to extract political and economic concessions from allies and rivals on the global stage.
- Trump reported plans to impose tariffs on Canadian, Mexican, and Chinese goods on February 2. Allegedly because of illegal migration and drug trafficking that enter the United States through these countries. Canada and Mexico were threatened with tariffs of 25%, and China with 10%. Later, Trump wanted to increase Chinese tariffs by another 10%.
- The tariffs against China went into effect on February 4. At the same time, Trump gave Mexico and Canada a one-month reprieve — until March 4 — to try to resolve the situation.
- China responded to new tariffs from the United States and increased import duties on a number of American agricultural and food products by 10-15%.
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