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Trade tensions escalate between US, Canada, Japan, and Mexico amid tariff disputes

2 Feb 2025

Trenton, Canada – The Canadian Prime Minister Justin Trudeau has announced retaliatory tariffs of 25% on $155 billion worth of American goods following the US decision to impose tariffs on Canadian imports. An initial $30 billion in tariffs will take effect on Tuesday, with the remainder implemented in the coming days.

Trudeau, alongside provincial premiers, condemned the US move, calling it unjustified. Foreign Minister Mélanie Joly reaffirmed Canada’s stance, stating, “Canada will not back down.” Ontario Premier Doug Ford criticised the tariffs as illegal, suggesting Trump aims to weaken Canada economically.

The US justified the tariffs by citing concerns over drug trafficking, particularly fentanyl. However, Canadian officials argue the issue is minimal compared to the flow of drugs from Mexico. Trump also announced a 10% tariff on Chinese imports, prompting strong opposition from Beijing.

China condemned the tariffs as a violation of WTO rules and vowed countermeasures, warning that the move could harm anti-narcotics cooperation between the two nations. The Chinese government is considering legal action at the WTO and urged the US to engage in fair dialogue.

Experts warn the tariffs could push Canada into recession while also raising prices for American consumers. Canadian leaders are now exploring alternative trade markets to reduce reliance on the US.

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