The leaders of Canada and Mexico have responded to President Donald Trump’s decision to impose tariffs of up to 25% on their exports to the US, as well as targeting China. Canadian Prime Minister Justin Trudeau announced a tit-for-tat 25% tariff phased in across C$155bn worth of American products, warning of potential job losses and increased costs for US consumers. Trudeau called on Canadians to buy less American products and choose Canadian alternatives.
Mexico’s President Claudia Sheinbaum ordered measures to defend Mexico’s interests against the tariffs imposed by Trump, while China announced it would complain to the World Trade Organization, arguing that the tariffs violate WTO rules. The imposition of tariffs sets the stage for a damaging trade war between the US and its top trade partners, with Trump threatening tariffs against European Union nations as well.
The American Chamber of Commerce in Mexico warned that the tariffs would hit both economies and fail to address the real challenges of security, migration, and drug trafficking. Economists have raised concerns about the repercussions of higher tariffs for both American consumers and the economies of the targeted countries.
Despite critics warning of the negative impact of tariffs on inflation and consumer prices, Trump defended his decision, claiming that tariffs would lead to success and bring in new revenue to the US government. While some politicians supported Trump’s tariffs as a way to address issues like illegal drugs and immigration, others criticized the move as harmful to American families and potentially causing a severe recession in Mexico.
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