Canada's acting Prime Minister Justin Trudeau declared that his nation is 'prepared' to face U.S. tariffs. U.S. President Donald Trump announced a 25% tariff on all goods coming from Canada starting Tuesday. In response, Justin Trudeau announced that Canada would impose a 25% tariff on $155 billion of U.S. imports.
On Saturday, Trump signed an executive order imposing a 10% tariff on all imports from China and a 25% tariff on imports from Mexico and Canada. However, energy imports from Canada, including oil, natural gas, and electricity, will be taxed at a 10% rate.
'Canada Is Ready'
Soon after Trump's announcement, Trudeau tweeted that he would be discussing the matter with Mexico's President Claudia Sheinbaum and had already conferred with his cabinet. He remarked, 'We didn’t want this, but Canada is ready.' At a news conference, Trudeau stated, 'Tariffs violate the free trade agreement signed a few years ago. This will have serious repercussions for the American people.'
Read More: Trump's Bold Measures... Orders Heavy Import Duties on Canada, China, and Mexico
Trudeau Warned of a Strong Response
A day before Trump signed the executive order, Canadian Prime Minister cautioned that if the U.S. imposes tariffs, there will be a 'strong and immediate reaction.' He said, 'No one on either side of the border wants to see American tariffs on Canadian goods. We are working hard to prevent these tariffs, but if the U.S. proceeds, Canada is ready for a powerful and swift response.'
If these countries retaliate against the U.S., Trump's order includes provisions to further increase rates. However, this decision risks escalating economic tensions with America's largest trading partners, Mexico and Canada.
Read More: Mexico's Lady President Hits Back at Trump with Tariffs on U.S. Products
This move will not only impact trade between the U.S. and its neighboring countries but could also drive up inflation, presenting greater economic challenges for the general public.
