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Canada retaliates, Mexico prepares backup as Trump stands firm on tariffs
Canada will impose $107 billion in retaliatory tariffs on US goods, said PM Justin Trudeau after US President Trump did not back from his tariff plans.
As United States President Donald Trump declined to back down from imposing high tariffs on its neighbouring nations, Canada has announced that it will impose retaliatory tariffs on US goods worth $107 billion (155 billion Canadian dollars) from Tuesday.
Outgoing Canadian Prime Minister Justin Trudeau, in an attempt to avert the high tariffs of the United States, said that the country would impose 25 per cent tariffs on US goods worth 30 billion Canadian dollars from Tuesday if the Trump administration goes through with its plan, reported news agency Reuters.
The rest of the retaliatory tariffs on US goods worth 125 billion Canadian dollars will be slapped within 21 days, Trudeau said.
"Our tariffs will remain in place until the US trade action is withdrawn, and should US tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures," Reuters quoted Trudeau as saying.
Along with Canada, the other North American nation bracing for the US tariffs blow, Mexico, said on Monday that it has back-up plans in case Trump goes ahead with his tariff plans. Without giving much details, Mexico President Claudia Sheinbaum said that country was prepared in case the United States slaps tariffs on it on Tuesday.
"We have a plan B, C, D," Reuters quoted Sheinbaum as saying.
China, another big nation at the receiving end of US’ high tariffs, said that it will also retaliate if the US goes ahead with its plans. China's Commerce Ministry reiterated that the US was trying to “bully” them over fentanyl flows, said a Reuters report.
This comes after the US threatened China with additional 10% tariffs last week set to take effect from Tuesday, which would result in a total of 20% tariffs by the US against China.
The statements from the Canadian and Mexican leaders also come as the March 4 deadline set by US President Donald Trump to impose high tariffs on both nations has set foot.
Accusing Canada and Mexico of not doing enough to stop illegal immigration and drug trafficking, Donald Trump announced tariffs on imports from Canada and Mexico, two of its biggest trading partners. While the tariffs were supposed to be levied in February, they were paused for a month till March 4.
Clearing any air on whether the two nations have any chances of averting the tariffs, Trump on Monday said that there was "no room left" for them to do so. He told reporters on Monday that the 25% tariffs he has planned for Canada and Mexico were “all set” to take effect.
With Reuters inputs.
