Summary
Trump signed an executive order imposing 25% tariffs on Canadian and Mexican imports—excluding Canadian energy at 10%—plus additional duties on Chinese products.
In response, Prime Minister Justin Trudeau announced a 25% duty on $155 billion in U.S. goods, beginning with $30 billion in tariffs Tuesday.
Mexican President Claudia Sheinbaum indicated reciprocal tariffs, rejecting claims that Mexico tolerates criminal groups trafficking fentanyl and insisting on respect for sovereignty.
Experts warn these tit-for-tat measures could drive up costs, disrupt supply chains, and mirror the previous U.S.-China trade war, possibly harming security.
excluding Canadian energy at 10%
Dammit, importing more hydro was a big part of my state’s clean energy plan.
Dunno enough to know how well it’d work but I read a comment here the other day saying Canada and Mexico shouldn’t retaliate with tariffs but instead opt out of their side of UMCA and just not uphold US IP laws. They could individually or together invest heavily into forming companies that provide cheaper alternatives to whatever crap US companies pull for recurring revenue. Stuff like legally mandating that phones have a local-made app store pre-installed, subsidizing or outright investing in really well made and well maintained jailbreaks, third party repairs, and third party spare parts for stuff like John Deere products, Apple produccts, Tesla products…pretty much eat the tariffs on exports to the US, don’t retaliate with own tariffs so prices locally don’t go up, but hurt US profits everywhere else by becoming a provider of cheaper but still reliable (probably more reliable tbh) alternatives to anything US.
I’m kinda disappointed that’s not what’s happening rn
Edit: USMCA, not NAFTA
Maybe they realize Trump is the enemy, not the rest of the US. How are they retaliating for a temporary and baseless trade war based on personal spite, with something that won’t work until after he’s gone? Why do something that affects both sides over the long term, when this could easily disappear if Trump is distracted or finds a way to yell “WIN”
If this is anything like last time, Trump just wants to put his name on a new trade treaty, regardless whether anything changes, so he can brag about being a great negotiator. His followers eat that shit up
Everything you described takes half a decade minimal to be put into reality. You are literally describing building a whole fricking industry. And we all know how fast you can establish industries in North America.
When a literal bully is stabbing you, you do NOT wait for half a decade to do something about that.
Instead, retaliatory tariffs are pretty much the only thing they can do instantly as a government.
We should do both. And very targeted tarrifs, not stupid broad tarrifs
In reply to your edit: it’s CUSMA if you want to annoy Trump :)
As an European i’ll be expecting a visit to Canada from our representatives in order start the negociations on a deal that bennefits both of us
As tariffs hurt the importing country, not the exporting country I think that it’s odd that Canada would punish their own citizens in retaliation.
They should have added a 25% export tax on energy seeing as Trump clearly didn’t want to pay more for his imported energy.
If you heard the speech the fact that they are giving time for the full set of Tariffs mean we have a small set (booze) we are willing to cut right away. Ie. Jack Daniels is no longer on store shelves. Orange juice is no longer on store shelves.
The extra time is for Canadian companies to find alternative (non-American) suppliers. They may be more to import due to distance/time but less impact on tariffs and potentially still more cost at the end for consumers but at the same time not American goods.
The intention is to ween us off your teat.
I don’t think Americans realize that long term this is not good for you. Once new trade routes come in, it’s going to be hard for you to get those partnerships back on account of you showing yourselves as a horrible business partner.
Canada will hurt in the short term but we will be stronger in the long run.
The only thing I’m worried about now is a full on American invasion and I fear that’s on the table.
I don’t think Americans realize that long term this is not good for you
Of course we do, or half of us do. The other half just want to bully someone and chant “USA! USA!”
So far I’m hoping there’s a pattern of “doing something spiteful that will harm ourselves, but moving onto the next thing at the first hint of resistance”. The new administration is just doing a speed run of scapegoats and might be on to the next before you can say “WTF”. I’m hoping the booze will be enough: hurt jack daniels right in maga country, until we’re back to focussing on abusing immigrants and people who speak Spanish
As tariffs hurt the importing country, not the exporting country
They very obviously hurt both so long as there’s any demand elasticity and especially when there are alternatives sources for the products .
Explain how demand elasticity affects both countries please. I expect Trump uses these tariffs as a scare tactic for countries who depend greatly on exports to America, but i don’t know how elasticity of demand plays in.
Tariffs will drive the prices upward but consumers will still be compelled to make those purchases for a time, which is to say that they will just bite the cost because the alternative is less desirable. This demonstrates a lack of equilibrium between price and demand. In a non-elastic scenario, the rise in price would directly correlate to a decrease in demand.
So, is Canada going to import what it gets from the US (it’s only geographic neighbour) from elsewhere?
If the answer is “no, not without at least a 26% jump in cost” then the tariff is a bad response.
Would you rather us bend over and take it?
Fuck America. You asked for this. Reap what you sowed. Unlike your trifling ass back home we are unified here. You have made us stronger as a nation.
Bend over and take what? Trumps declarations have no effect on Canada.
Canadians pay Canadian tariffs on US imports. Trump is fucking America already with his tariffs. Canada mirroring them gives Trump what he wants.
I’ll explain it for you. When the US government imposes a 25% tariff on Canadian goods, the cost to US consumers increases by 25%. Now, every other global supplier that was 1% - 24% more expensive gets the business that used to be Canadian revenue. So, Canadians lose US customers. We both lose.
If you want further reasoning on why this is bullshit, the “small government, lower your taxes” Republican government are the ones collecting the 25% tariff that is paid. It is a additional tax with no promise of social support. Do you think Trump will use that additional revenue to issue small business grants or to subsidize the businesses of the oligarchs in his administration?
Now, when people say stupid things like, “Canada imposing tariffs only hurts Canadians” it is very obviously 100% reciprocal. The retaliatory tariffs are meant to put the pressure on US exporters to put the pressure on their government to end the trade war. A few key points on the Canadian tariffs:
- They match number set by Trump. They are not escalating.
- They have a definitive and reasonable end. Remove the tariffs and our tariffs will also be removed. Not “stop all fentanyl smuggling” (maybe try having fewer US fentanyl users, huh? That’s meant to be sarcastic. Obviously this is a problem for both countries that we both take seriously.)
- They are strategic in ramping up the scope of the tariffs which begin with things like food consumables which are easy to forego before increasing to more industrial products which businesses, industries, peoples livelihoods and lives can depend on. This gives Canadian businesses time to prepare and negotiate overseas trade and gives America time to roll back the tariffs instead of knocking out the whole supply chain. Remember how fucked the global economy was when one boat got stuck in the Suez Canal for a couple of days? Obviously this isn’t as big as that, but that disruption lasted months, years even. Sweeping, full-stop tariffs like the US tariffs are going to have ripple effects that last for months even if they’re rescinded by the end of the week.
Finally, to address the argument that the tariffs will strengthen the US manufacturing economy, I will refer back to my point about the government using the tariff income to subsidize American businesses. Small businesses are not (and frankly cannot) replace entire Canadian (and Mexican) industries within a couple of months. That money is not going back into the economy. The US oligarchy, the massive monopolistic industry giants, are the only ones that are going to spring up and, chiefly, profit off this whole debacle. And that’s by design.
Living through Brexit, I get all this.
It all only holds if there are alternative suppliers that are cheaper than the new escalated price for the goods you placed tariffs on. Canada and the US have the (mis)fortune to have extremely easy transportation of goods between them, but expensive transportation of good to/from anywhere else. That’s the geography and there’s no getting away from it, just like the UK can’t float away from Europe. America isn’t going to stop importing (to imagine a bullshit example) lumber from Canada because shipping it from anywhere else is impractical and domestic supply won’t be able to deal with the shortfall. Similar for Canada.
Both sides are engaging in massive acts of self harm, and Canada trying to go punch for punch isn’t a winning strategy. Canada has to respond in a smarter way than a reflexive mirroring move.
Please find an adult and ask them to explain general economics to you and in the meantime look up the impact of tariffs and trade wars.
Canada doing nothing gives Trump what he wants. Fighting back with our own Tariffs is the next step. Make no mistake this is a war. Not all war is fought with guns.
this is a war
This is one persons tantrum. One person with way too many weapons.
Yes and that 1 person declared war.
The US President imposes taxes on Canadian imports that US citizens will have to pay. In response, the Canadian Prime Minister retaliates with taxes on US imports that Canadians will have to pay.
Basically, both just want to raise taxes.
This fucking clown is going to push the whole world into a new recession.
Trump Depression by 4th of July
That way the rich capitalists can buy up EVRRYTHING at fire sale prices!
Remember when Biden was doing all he could to keep things in one piece while all the newspapers were trying to doom and gloom us into a recession just after the Great Resignation?
Stability is bad for business
- War is good for business!
The Great 1929 Recession boosted conservatives.
Can he also tell Google to NOT show both “names” for Gulf of Mexico in his country? This could spark a wave of international boycott of Trump’s petty bullshit.
I just checked on mine, it says “Gulf of Mexico”. Perhaps it depends where a user is located?
Idk when the change is implemented but Google said it would show
- “Gulf of America” in the US
- “Gulf of Mexico” in Mexico
- Both names elsewhere
Nothing has changed for Czech users yet.
Nothing has changed for US users either. Not yet, anyway
It annoys me so much. It hasn’t updated yet in Canada but “Gulf of America” is just wrong for any country outside of the US. Why show me Gulf of America when that’s not a recognised name for my own or any other country besides the USA.
Good morning American Neighbors. Have you classified me and mine as threats to your
world hegemonyNational security yet?If you’re Canadian, can you please come and burn down the White House again?
He’s trying to fire all ATCs. Ukraine has shown how easy it is to turn a drone into a firebomb.
I’m about ready to ngl
Just get the Jan 6 rioters on call, I’m sure they’d be happy to help with that
Not with their God King in the building.
Yup they’re now officially standing by.
please, just put us out of our fucking misery. PLEASE.
too busy keeping an eye on our own fifth column, and potential collaborators/quislings should things go “there” .
Considering Trump’s reaction to retaliation against his own divine authority, is to flip the fuck out and escalate.
“HOW DARE YOU RESIST”
I wish you the very best. know that many, many, many of us consider you to be true friends and neighbors. please be there and sane should we manage to reverse this disaster. we will need you.
Please marry me so I can get Canadian citizenship and escape this insane fascist hellhole, PLEASE
Coming soon.
Trump: wait, they can DO that?
Can’t wait to call and gripe loudly about the massive price increases to the staffers of my idiot congressman and senators.
Orange
Mangoes
Bananas
very nice: 🍊 🥭🥭🥭 🍌🍌🍌
Correct. Fascist 47 is a terrible human.
He should no longer be permitted to breathe.
Wonder who will be the first with sanctions.
Good response, world politics goes wild
