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As Canada, Mexico brace for Donald Trump's 25% tariffs, Ottawa says ‘ready to retaliate’
US President Donald Trump said that he was thinking of imposing the tariffs on Canada and Mexico by February 1.
Canada and Mexico are bracing themselves for 25 per cent tariff impositions as Donald Trump returned to the White House as the President of the United States and said he could make the move as early as February 1.
Hours after he took the oath of office, Donald Trump raked up his threat against two of the major trading partners of America, accusing them of failing to stop illegal immigrants and drug trafficking from entering the United States.
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"We're thinking in terms of 25 percent on Mexico and Canada, because they're allowing vast numbers of people -- Canada's a very bad abuser also -- vast numbers of people to come in, and fentanyl to come in," he said in the Oval Office while signing a slew of executive orders.
In another order that Trump signed on Monday, he directed agencies to study a set of trade-related issues including deficits, unfair practices, and currency manipulation.
With this, Trump also asked the agencies to "recommend appropriate measures, such as a global supplemental tariff or other policies" as remedies.
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Additionally, the newly inaugurated President also called for a review of the US' trade deal with Canada and Mexico.
Canada ‘ready to retaliate’
Reacting to Trump's tariff threats, top Canadian ministers on Monday said Ottawa will be ready to retaliate after the US President said he was thinking of imposing the 25 per cent tariff on February 1.
Mélanie Joly, the Canadian foreign minister, said that they "will continue to work on preventing tariffs" but also that they are "working on retaliation".
Meanwhile, the finance minister of Canada, Dominic LeBlanc said Trump can be unpredictable. "None of this should be surprising. Our country is absolutely ready to respond to any one of these scenarios," he added.
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Earlier, the Canadian leaders had expressed relief over the fact the tariffs were not imposed on Trump's first day itself.
Notably, Canada is one of the most trade-dependent countries in the world, with 75 per cent of its exports going to the United States. It is the top export destination for as many as 36 American states, The Associated Press' report said.
Despite President Donald Trump's claims of US not needing Canada, a quarter of the oil America consumes every day is from there.
“It would be a mistake for the American government to proceed with imposing tariffs, in terms of the cost living in the United States, in terms of jobs in the United States and the security of supply chains,” LeBlanc said.
(with inputs from agencies)
