Trudeau: The U.S. Has Declared a Trade War on Canada, Ottawa Imposes Retaliatory Tariffs
Canada and the United States have found themselves on opposite sides of a new trade conflict, which escalated after the U.S. imposed tariffs on Canadian goods.
Canadian Prime Minister Justin Trudeau stated that today, the United States, our closest ally and friend, has effectively declared a trade war on Canada by imposing 25% tariffs on imports from Canada and Mexico. Trudeau emphasized his determination to defend the country’s economic interests and immediately announced retaliatory measures. He addressed Donald Trump with a sharp remark:
"Donald, you’re a very smart guy, but this is a very stupid decision."
This reaction came in response to the latest U.S. tariff hike, which affects a wide range of Canadian goods. According to Trudeau, the tariffs cover products worth 30 billion CAD ($20.7 billion USD). Ottawa believes these measures harm not only Canada’s economy but also undermine trade relations between the two traditionally strategic partners.
In response, the Canadian government has filed a complaint with the World Trade Organization (WTO), demanding a review of U.S. tariff policies. Canadian officials argue that the U.S. tariffs violate free trade principles and unfairly disadvantage Canadian manufacturers. A similar move was made by China, which previously faced 20% tariffs on its exports to the U.S.. These developments indicate that trade disputes among major economies are escalating, putting the global trade system under serious pressure.
As a countermeasure, Trudeau announced reciprocal tariffs, with Canada imposing 25% duties on U.S. goods totaling $107.4 billion USD. This strategy aims to protect Canadian businesses from economic pressure while sending a clear message to Washington that Canada will not tolerate unilateral actions that damage bilateral trade relations. According to Trudeau, these retaliatory measures are a necessary step to maintain economic competitiveness amid a global trade conflict.
Emphasizing the importance of stability in international trade, Trudeau warned that the trade war could lead to higher prices for consumers, disruptions in supply chains, and significant economic losses for all parties involved. He called for dialogue and compromise, but added that if U.S. tariffs remain in place for 21 days, Ottawa would be forced to expand the list of taxed goods and introduce additional tariffs worth up to 125 billion CAD ($86.2 billion USD).
According to analysts, the escalation of the trade conflict between the U.S., Canada, and other key players could trigger a chain reaction, negatively impacting global financial markets. Both sides risk facing additional economic difficulties if the dispute escalates into a prolonged trade war. Meanwhile, Canada remains determined to defend its interests, even if it means taking tough countermeasures.
The U.S. administration has yet to comment on the situation, but Trump’s government is expected to continue its aggressive trade policy aimed at protecting American industries. In this context, the future of U.S.-Canada trade relations remains uncertain, requiring close attention from global economists and policymakers.
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