Canada and Mexico Announce Retaliatory Tariffs Against the U.S.
The trade tensions between the United States, Canada, and Mexico have escalated as both neighboring countries announced countermeasures in response to the U.S.’s sweeping tariffs on their goods.
On Saturday, February 1, 2025, Mexican President Claudia Sheinbaum directed her Economy Minister to enact both tariff and non-tariff measures to safeguard Mexico’s interests. Meanwhile, Canadian Prime Minister Justin Trudeau confirmed that Canada will retaliate by imposing 25% tariffs on a range of U.S. products, from beverages to appliances.
Mexico’s Response
President Sheinbaum emphasized that Mexico seeks collaboration and dialogue with its northern neighbor but had no choice but to respond to the U.S.’s actions. In a detailed post on X (formerly Twitter), she stated, “We’ve been forced to implement Plan B, which includes tariffs and other measures to defend Mexico’s interests.”
Mexico remains the United States’ largest export market, with bilateral trade surpassing $797 billion in 2023. President Trump justified the tariffs by blaming Mexico for failing to curb fentanyl trafficking and migration. Sheinbaum refuted these claims, highlighting her government’s seizure of 20 million doses of fentanyl and the arrests of over 10,000 individuals involved in drug trafficking since she assumed office in October 2024.
Canada’s Countermeasures
Canada, Mexico’s ally in the trade dispute, also announced retaliatory tariffs totaling C$155 billion ($107 billion). Trudeau outlined that duties on C$30 billion worth of U.S. goods would take effect immediately, with the remaining C$125 billion following in three weeks.
Targeted products include American beer, wine, bourbon, fruit juices, clothing, and household appliances. Trudeau also hinted at non-tariff measures related to critical minerals and energy.
In a press conference, Trudeau warned that these tariffs would negatively impact both nations, potentially jeopardizing jobs in U.S. auto assembly plants and manufacturing sectors. He urged Canadians to support domestic businesses and consider local vacations to reduce reliance on American products and services.
Economic Implications
Canada’s economy heavily depends on trade with the U.S., with exports accounting for nearly 17.8% of its GDP and over 2.4 million Canadian jobs. In 2023, Canada exported C$550 billion worth of goods and services to the U.S., with energy and manufacturing being the top contributors.
Despite Canada’s robust trade ties with the U.S., Trudeau acknowledged the upcoming challenges, stating that the tariffs coincide with political turbulence within his party. With his approval ratings at a low, Trudeau has announced his intention to step down after nine years in office once a new Liberal Party leader is elected.
Reflecting on the long-standing partnership between the two nations, Trudeau said, “From fighting side by side on the beaches of Normandy to forging the most successful economic and security alliance in history, Canada has always stood with the U.S. in its darkest moments.”