TORONTO (AP) — Canada’s prime minister and Mexico’s president ordered retaliatory tariffs on goods from the U.S, following through with their threats after U.S. Donald Trump sparked a trade war by imposing sweeping tariffs on imports from Canada, Mexico and China.
Canada had been proactively saying for months that it would respond to any tariffs on Washington's North American allies, while Mexico followed a more cautious approach. But in the end both nations did what they had anticipated: retaliate.
Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum spoke by phone Saturday after Trump's administration imposed sweeping tariffs — 25% on goods from Canada and Mexico, and 10% on imports from China — although there is still no indication the two countries are coordinating responses or will do concerted actions in coming days.
Trudeau's office released a statement about the call with Sheinbaum in which they agreed to work together to keep a strong bilateral relationship.
“They spoke about the imposition of U.S. tariffs on both countries, as well as their respective efforts to enhance border security and combat the production and distribution of illegal drugs,” a statement said.
Unlike Mexico, whose president only announced it will impose retaliatory tariffs without mentioning any rate nor products, Trudeau announced Canada will respond with 25% tariffs against $155 billion worth of American goods, including alcohol, furniture and orange juice, and he even suggested Canadians should not buy U.S. products or vacation in the U.S.
Canada and Mexico ordered the tariffs late Saturday despite Trump’s further threat to increase the duties charged if retaliatory levies are placed on American goods.
“We don’t want to be here. We didn’t ask for this. But we will not back down,” Trudeau said late Saturday. “We’re certainly not looking to escalate but we will stand up for Canada.”
At the local level, some authorities in provinces like Ontario, British Columbia and Nova Scotia will remove American liquor brands from government store shelves. Ontario Premier Doug Ford said Sunday the Liquor Control Board of Ontario sells nearly $1 billion worth of American wine, beer, spirits and seltzers every year.
“Not anymore,” Ford said in a statement. “Starting Tuesday, we're removing American products from LCBO shelves. As the only wholesaler of alcohol in the province, LCBO will also remove American products from its catalogue so other Ontario-based restaurants and retailers can't order or restock U.S. products.”
And besides the official responses, people are already thinking on their own ways to face Trump's decision, and one of the initial reactions has been to share in social media lists with alternatives to American products.
Trudeau, in fact, addressed Americans directly, saying they the tariffs “will have real consequences for you.”
“Careful Trudeau. The Texas economy is larger than Canada’s. And we’re not afraid to use it.” Texas Republican Governor Greg Abbott posted on X after Trudeau spoke.
Canadians are feeling an undeniable sense of betrayal from their one-time closest allies and friends. Trudeau reminded Americans that Canadian troops fought alongside them in Afghanistan and helped respond to myriad crises from wildfires in California to Hurricane Katrina.
Canadian hockey fans booed the American national anthem at two National Hockey League games on Saturday night.
In Mexico, the official public approach to Trump’s tariff threat has been different , limiting public statements to saying the government was prepared for whatever was coming and that it would ensure the country was respected.
Recalling how in 2019 Mexico was ultimately able to avoid Trump’s tariff threat by adding immigration control to the responsibilities of its newly formed National Guard, Mexico was hoping to dodge the tariffs again or at least find a way to get them lifted quickly.
But the accusation of criminal alliances with Sheinbaum’s administration pushed her to punch back. She called on the U.S. to clean up its own problems with drugs and guns and keep its nose out of Mexico. Trump said he was imposing the tariffs to stop the flow of illegal immigrants and drugs across both the southern and northern U.S. borders.
Beyond the tariffs, academics and diplomats in Mexico harshly criticized the “retaliation clause” Trump included that threatened to raise tariff levels even higher if the targets hit back.
Martha Bárcena, former Mexico ambassador to the U.S. during Trump’s first term, said it’s “very delicate because there has never been such a harsh official statement by the United States government against the Mexican government.”
“It indicates not only a lack of trust, but the consideration of the Mexican government as a national security threat to the United States with all of its implications,” Bárcena said.
Gabriela Siller, director of economic analysis at the Mexican financial group Banco Base, said that the tariffs could trigger an “economic crisis” in Mexico, resulting in a blow for key industries, rising unemployment and price hikes.
In the short term, Sheinbaum’s government would likely have to “apply a countercyclical fiscal policy in Mexico so that there would not be a crash” and take on mounting debt, Siller said.
In the long term, the government would need to seek out new trade agreements, but over-dependence on trade ties with the U.S. will make it hard for Mexico to quickly diversify exports, she said.
After Trump won the election in November, Canadian leaders openly said Mexico was the problem on trade and the border, not Canada. And some have continued to say so.
“I can assure you what President Trump underestimates -- the resilience of the Canadian people, the strength of the Canadian people. No matter what political stripe, we come from Canada, we’re united," Ontario Premier Doug Ford said. “I can tell the American people, Canada is not the problem. The problem is the Mexican border and China. That’s where the problem is.”
The trade war comes as Canada is entering an election cycle. Trudeau's Liberal Party will announce a new leader on March 9 and a spring election is expected.
“Canada will not bow down to a bully," said Mark Carney, considered the frontrunner to replace Trudeau.
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Verza contributed from Mexico City. AP writers Megan Janetsky and Fabiola Sánchez also contributed from Mexico City.
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