Canada retaliates against US tariff threat; will impose 25 percent tariff on US imports, says Trudeau

WASHINGTON: Canada responds to the tariff threat imposed by US President Donald Trump by the same token. Last Saturday, Trump imposed a tariff of 25 percent on goods from Canada and Mexico and a tariff of 10 percent on Chinese goods. This comes into effect from Tuesday midnight onwards.

Canadian Prime Minister Justin Trudeau criticizing Trump's decision, announced that he will impose a 25 percent tariff on US-made goods, which are valued at 15,500 crore Canadian dollars. Of this, tariffs will be imposed on imports worth 3,000 crore dollars starting Tuesday and 12,500 crore dollars worth of imports within 21 days.

The tariffs will affect all products imported into Canada from the US. At the same time, Trudeau reminded that he does not want to worsen relations with the US and that the Canadian people have stood by the US in times of crisis. He said that citizens should buy domestic products. The announcement comes as Trudeau, who announced his resignation last month, is set to step down in March.

Mexico and China retaliate

Mexico may also impose a 25 percent tariff on US imports. Mexico has said it is open to discussing U.S. concerns about illegal immigration to the US from Mexico. However, Mexico is deeply dissatisfied with Trump's comments linking drug cartels with the Mexican government. Trump's renaming of 'Gulf of Mexico' to 'Gulf of America' also caused discontent.

Meanwhile, China has announced retaliation and warned the US that this would negatively affect bilateral relations. China also plans to approach the World Trade Organization regarding this.

Canada, Mexico, and China are the U.S.'s largest trading partners. These three countries account for 40 percent of U.S. imports. Trump imposed the tariffs in an attempt to stop illegal immigration and the flow of the narcotic drug fentanyl.

Not interested in trade wars with US

All three countries have made it clear that they don't want to opt for a trade war with the US. Trump has responded by saying that tariffs may be raised further if they retaliate.

The U.S. Chamber of Commerce has commented that Trump's decision will raise the cost of living for American families, and the supply chain will be disrupted.