The Prime Minister of Canada, Justin Trudeau, announced this Tuesday that his government will file complaints with the World Trade Organization (WTO) and the United States-Mexico-Canada Agreement (USMCA) against the United States, in response to the imposition of tariffs on Canadian trade.
Trudeau also announced retaliatory measures and did not hesitate to send a message to the American people, warning that the current situation will harm the populations of both countries.
The Canadian leader also stated that the Trump administration is seeking to collapse the Canadian economy to facilitate its annexation to the United States.
Tariffs and trade reprisals
Canada has already begun to implement retaliatory measures, with the imposition of a 25% tariff on U.S. goods, worth 30 billion Canadian dollars (equivalent to 20.74 billion U.S. dollars).
Trudeau insisted that this decision is a proportional and necessary response to Washington's economic aggression.
At a press conference, the Canadian Prime Minister emphasized that the justifications provided by Trump for imposing tariffs are unfounded.
"The reasons given for this decision are false. The excuse regarding fentanyl is fictitious", stated Trudeau, referring to the remarks made by the U.S. president, who had indicated that the measure aimed to pressure Canada and Mexico to intensify their fight against the trafficking of this drug.
Canada's imposition of tariffs on the U.S. did not sit well with Trump, who wrote a defiant message on Truth Social.
"Please explain to Governor Trudeau of Canada that when he imposes a retaliatory tariff on the U.S., our reciprocal tariff will immediately increase by a similar amount!" the leader wrote, referring to Trudeau with the significant title of "governor."
The concern over the annexation of Canada and a warning to the people of the U.S.
One of the most striking aspects of Trudeau's intervention was his accusation that Trump is using the trade war as a mechanism to weaken the Canadian economy and facilitate its annexation to the United States.
"We need to pay attention to what seems to have been said all this time: that he wants a complete collapse of the Canadian economy because that would make it easier to annex Canada. This is never going to happen, we will never be the 51st state," he stated emphatically.
Trudeau emphasized that Washington's strategy will harm both Canadians and Americans.
"American families are going to notice this as well. This is going to harm the population on both sides of the border," he warned, while reiterating his willingness to negotiate with the U.S. to review customs agreements, without yielding to pressures that seek to destabilize Canada's sovereignty.
Reactions from the business and labor sectors
Since the beginning of the trade crisis, business and union leaders in Canada have strongly criticized Trump's decision. Unions such as Unifor and United Steelworkers (USW) have described the measure as "a direct attack" on Canadian workers and have urged Ottawa to respond decisively.
Goldy Hyder, president of the Business Council of Canada, stated that the country must remain "firm" in the face of Washington's actions.
In the same vein, the association of food and beverage producers in Canada requested a coordinated response strategy, including the imposition of tariffs on finished U.S. goods.
The stance of the United States
The U.S. Secretary of Commerce, Howard Lutnick, acknowledged in an interview with CNBC that tariffs will impact consumer prices in the short term but assured that they will bring long-term benefits to the U.S. economy.
"People are focused on the short term, but we are going to create jobs and bring a level of production back to the U.S. like no one has seen before," Lutnick stated.
However, the decision has generated international backlash.
An unprecedented conflict
The U.S. tariffs went into effect at midnight, following the end of the grace period that Trump had granted to Canada and Mexico. This time, there was no room for last-minute deals.
"The tariffs are ready. They will take effect tomorrow," Trump announced from the Roosevelt Room of the White House.
The escalating tensions between the two countries could have far-reaching political and economic repercussions.
Although Trudeau has made it clear that he will not yield to Trump's pressures, uncertainty about the future of trade relations between Canada and the United States persists.
In an environment where protectionism seems to be gaining ground, the confrontation between Washington and Ottawa could redefine not only North American trade but also diplomatic relations in the region.
For now, Canada is not backing down and, as Trudeau has warned, "we will continue to defend our rights and our sovereignty with all the tools at our disposal."
The president of Mexico, Claudia Sheinbaum, also announced that her country will respond with "tariff and non-tariff measures" and described the action as "unfortunate" and "inconceivable."
Sheinbaum stated that she expects a call from Trump to discuss matters, although she warned that if a solution is not reached, her government will announce a response plan in the coming days.
Frequently Asked Questions about Tariffs between Canada and the United States
Why has Canada imposed tariffs on the United States?
Canada has imposed a 25% tariff on U.S. products in retaliation for the same percentage tariffs imposed by Donald Trump on Canadian imports. This measure by Canada is a proportional response to what they consider an "economic aggression" by Washington.
What has motivated Trump to impose tariffs on Canada?
Donald Trump justified the 25% tariffs on Canada by claiming that the country has not adequately addressed the trafficking of fentanyl into the United States. Furthermore, Trump has accused Canada of attempting to undermine the U.S. economy, which Canada and other countries have dismissed as unfounded.
What actions has Canada taken in response to the tariffs from the United States?
In addition to imposing tariffs on American goods, Canada has filed lawsuits with the World Trade Organization (WTO) and the United States-Mexico-Canada Agreement (USMCA). These actions aim to legally challenge the tariffs imposed by the United States and protect the Canadian economy.
What impact could these tariffs have on the economy of Canada and the United States?
The tariffs imposed by both countries could significantly impact their economies. For Canada, 76% of its exports go to the United States, which could reduce its GDP. In the U.S., the tariffs could raise the prices of key products, affecting consumers and increasing inflation.
What position has Mexico taken regarding the United States' tariffs?
Mexico, affected by tariffs similar to those of Canada, has announced that it will also take retaliatory measures. President Claudia Sheinbaum has described the tariffs as "unthinkable" and stated that her country will respond with both tariff and non-tariff measures.
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