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Trump’s trade war among allies triggers retaliation from Canada and Mexico

archiescom - February 2, 2025

TORONTO (AP) — Canada and Mexico ordered retaliatory tariffs on American goods in response to sweeping tariffs imposed by U.S. President Donald Trump, and businesses and consumers in both countries questioned Sunday how the new trade war might affect them.

Canada initially ordered tariffs of 25% on American imports starting Feb. 4, including beverages, cosmetics and paper products worth 30 billion Canadian dollars ($20 billion). A second list of goods was to be released soon, including passenger vehicles, trucks, steel and aluminum products, certain fruits and vegetables, beef, pork, dairy products and more. Those goods were estimated to be worth 125 billion Canadian dollars ($85 billion).

Mexico has so far said only that it will impose retaliatory tariffs, without mentioning any rate or products.

Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum spoke by phone Saturday after Trump’s administration imposed the new tariffs — 25% on goods from Canada and Mexico, with a lower rate of 10% for Canadian oil, and 10% on imports from China.

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