US-Canada tariff war: US President Donald Trump said he had spoken on Monday to Prime Minister Justin Trudeau about the punishing tariffs he has levied on Canada, adding that they would talk again later in the day.
“Just spoke to Justin Trudeau. Will be speaking to him again at 3:00 P.M,” Donald Trump said on his Truth Social network, while pushing his argument that the tariffs were about a “drug war” aimed at stopping the flow of fentanyl.
“Canada doesn’t even allow U.S. Banks to open or do business there. What’s that all about? Many such things, but it’s also a DRUG WAR, and hundreds of thousands of people have died in the U.S. from drugs pouring through the Borders of Mexico and Canada. Just spoke to Justin Trudeau,” the US president added.
The interaction comes even as the White House said on Monday it has noticed that Mexico is “serious” about President Trump’s executive order on tariffs, but Canada has “misunderstood” it to be a trade war between the neighbouring countries.
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Canada’s retaliatory tariffs move
Canada has introduced retaliatory tariffs against the US, signalling the onset of a trade war between the neighbouring nations.
Justin Trudeau announced sweeping 25% tariffs on American products worth 155 billion Canadian dollars, covering items such as beer, wine, household appliances, and sporting goods.
This move mirrors US President Donald Trump’s 25% tariff on Canadian and Mexican imports, along with an additional 10% levy on Chinese goods, citing concerns over illegal immigration and drug trafficking.
Trudeau emphasised that he would “not back down in standing up for Canadians” but acknowledged the potential impact on both sides of the border.
He further clarified that tariffs on $30 billion worth of US goods would take effect on Tuesday, with an additional $125 billion in 21 days, allowing Canadian businesses time to adapt.
Trump’s tariffs on goods from Mexico, Canada and China
On Saturday, Trump ordered sweeping tariffs on goods from Mexico, Canada and China, demanding they stanch the flow of fentanyl and illegal immigrants into the US, kicking off a trade war that could dent global growth and stoke inflation.
“The good news is that in our conversations over the weekend, one of the things we’ve noticed is that Mexicans are very, very serious about doing what President Trump said,” Kevin Hassett, the director of the White House’s National Economic Council, said on CNBC.
“Canadians appear to have misunderstood the plain language of the executive order and they’re interpreting it as a trade war,” Hassett added.
On being asked what Canada and Mexico must do to lift the 25% tariffs that Trump announced, the president told reporters on Sunday they “have to balance out their trade, number one”.
“They’ve got to stop people from pouring into our country … they have to stop people pouring in, and we have to stop fentanyl. And that includes China,” said Trump, who announced an additional 10% tariff on Chinese goods.
Trump also indicated on Sunday that the 27-nation European Union would be next in the firing line, but he did not say when.
(With inputs from agencies)
