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HomeBusiness21st Century ChallengesWhat Canada and Mexico, the U.S.’s Closet Neighbors, Think About Tariff Threats

What Canada and Mexico, the U.S.’s Closet Neighbors, Think About Tariff Threats

U.S. President Donald Trump has very publicly threatened Canada and Mexico, two major trading partners and next-door neighbors to the U.S., with tariffs for months. Now that Trump has once again assumed office, the leaders of Canada and Mexico have both responded with different tones toward the 47th president.

Trump has threatened a 25% tariff on goods imported into the U.S. from both Canada and Mexico.

Canada’s Response

In general, Canada has taken a more militant stance towards the U.S. tariff threat in recent days. Canadian Prime Minister Justin Trudeau this week said that counter-tariffs are likely to be imposed on U.S. imports if President Trump goes ahead with his tariff plan against the U.S.’s northern neighbor.

At a news conference this week, Trudeau said: “I support the principle of dollar-for-dollar matching tariffs. It’s something that we are absolutely going to be looking at if that is how they move forward.”

Some Canadian politicians, including Ontario Premier Rob Ford, see tariffs as likely and are not hesitating to share their thoughts, with Ford saying that Trump “declared an economic war on Canada.”

Mexico’s Response

Mexico has taken a very different tone than Canadian’s government. For example, Mexican President Claudia Sheinbaum said this week that “cool heads” need to prevail in the tit-for-tat with President Trump.

Rather than outlining direct threats against the U.S to counter the tariffs, Sheinbaum invoked the 2020 United States-Mexico-Canada Agreement (USMCA) on trade, which was a renegotiation of 1994’s NAFTA agreement. Sheinbaum noted that any tariffs would violate that agreement.

The Mexican government, through its Foreign Minister, had already begun talking to U.S. diplomats when the Mexican President weighed in, suggesting a more cooperative approach.

At MoreThanShipping.com, we will keep you posted on Trump’s tariffs and plans.

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