Trump’s actions among allies triggers retaliation from Canada and Mexico

TORONTO (AP) — In retaliation for the broad tariffs enacted by President Donald Trump, Canada and Mexico imposed countermeasures on American goods. Consumers and businesses in both nations voiced concerns on Sunday about the potential impact of this escalating trade conflict.

Starting Tuesday, Canada implemented a 25% tariff on American imports, including cosmetics, beverages, and paper goods, with a total value of 30 billion Canadian dollars ($20 billion). A subsequent list of items, which was expected soon, included cars, trucks, aluminum and steel products, select fruits and vegetables, pork, beef, dairy, aerospace materials, and more. These goods were estimated to be worth 125 billion Canadian dollars ($85 billion).

“We can engage in this battle for as long as they wish,” Trump declared, adding that he intended to converse with his Mexican and Canadian counterparts on Monday.

Mexico has only confirmed its decision to introduce counter-tariffs but has yet to specify the percentage rates or the specific items targeted.

Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum had a phone discussion on Saturday after Trump’s government imposed the new tariffs—25% on imports from Canada and Mexico, while Canadian oil faced a lower levy of 10%, alongside a similar 10% tariff on Chinese imports.

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A statement from Trudeau’s office indicated that Canada and Mexico agreed to “strengthen the deep ties” between their nations. While Canadian officials maintained open lines of communication with their Mexican counterparts, a senior Canadian authority stated that he would not characterize their tariff measures as fully synchronized.

“Now is the moment to opt for items manufactured in Canada,” Trudeau shared on X (formerly Twitter) on Sunday. “Examine the labels. Let’s contribute. Whenever feasible, pick Canadian-made products.”

Canada is the primary export market for 36 U.S. states, while Mexico is America’s largest trading ally.

Despite Trump’s additional warning that he might increase levies if retaliatory tariffs were imposed on American products, Canada and Mexico proceeded with their measures.

“We are not seeking to escalate this, but we will defend Canada,” Trudeau stated late Saturday.

Authorities in various provinces, including Ontario, British Columbia, Quebec, Manitoba, and Nova Scotia, were considering removing American liquor brands from state-run retail outlets.

For example, Ontario’s Liquor Control Board generates close to $1 billion annually from selling American beer, wine, spirits, and seltzers, Ontario Premier Doug Ford noted on Sunday.

“Not anymore,” Ford declared. Effective Tuesday, American alcohol products would be withdrawn from their inventory and sales lists. As the exclusive alcohol wholesaler in Ontario, this decision would block restaurants and retailers in the province from obtaining American beverages.

Social media users actively exchanged recommendations for non-American alternatives.

Speaking directly to Americans, Trudeau warned that the tariffs “will have tangible effects on you.”

Trump countered on Sunday, criticizing Canada’s trade surplus with the U.S. He argued that without this economic advantage, “Canada would no longer be a sustainable nation. Tough but true! As a result, Canada should become our beloved 51st state. Considerably lower taxes, vastly superior military defense for Canadians—AND NO TARIFFS!”

Many Canadians felt a profound sense of disappointment. Trudeau reminded Americans that Canadian soldiers had fought beside them in Afghanistan and assisted in disaster relief efforts in the U.S., including responding to California wildfires and Hurricane Katrina.

The resentment was apparent during sporting events. On Saturday, Canadian hockey fans booed the American national anthem at two NHL games. The protests continued on Sunday at an NBA game in Toronto, where the Raptors faced the Los Angeles Clippers.

During the anthem, one Raptors fan deliberately remained seated while wearing a Canada hat. Joseph Chua, an importer, anticipated being directly affected by the tariffs.

“I’ve always shown respect by standing for both national anthems, even removing my hat for the American one, but today, there’s some bitterness,” he admitted, adding that he would start avoiding American products.

In Mexico, officials kept their public remarks on the tariff dispute brief, merely stating that the government was ready and committed to ensuring Mexico’s interests were safeguarded.

Back in 2019, Mexico averted Trump’s tariff threats by tasking its newly established National Guard with handling immigration enforcement. However, this time, accusations that Sheinbaum’s administration had ties to criminal groups prompted her to respond firmly.

She urged the U.S. to address its own drug and firearm issues instead of interfering with Mexican affairs. Trump, in contrast, asserted that the tariffs were intended to curb illegal immigration and drug trafficking across both the southern and northern U.S. borders.

Mexicans were still processing the announcement on the streets.

Carlos Barona, a 40-year-old shop attendant at a small café in the heart of the city, remained unshaken by Trump’s move, expressing confidence in Sheinbaum’s leadership.

“If we endured the pandemic and everything that came with it, I believe we’ll manage this as well,” he said.

Meanwhile, in Mexicali, a border city adjacent to Calexico, California, some residents worried about broader repercussions of the trade dispute.

Alejandro Acosta, a driver who transports vegetables weekly to U.S. businesses, feared that American companies operating in Mexico’s Mexicali Valley might relocate back to the U.S.

“If they increase taxes on factories here, employment opportunities could decline,” he warned.

The trade conflict coincides with the start of Canada’s election season. Trudeau’s Liberal Party is set to reveal a new leader on March 9, with a national election anticipated in the spring.

“Canada will not succumb to intimidation,” declared Mark Carney, regarded as the leading candidate to succeed Trudeau.