Trump's Tariffs Are Implemented, Canada Retaliates With a 25% Tariff | Carscoops

      Canada will focus on American-manufactured electric vehicles if Trump does not relent.

      The Trump administration imposed a 25% tariff on goods from Canada and Mexico.

      In response, Canada quickly enacted a 25% tariff on various products, including motorcycles and alcohol.

      The Canadian government plans to escalate its response and eventually target American-made electric vehicles.

      The trade confrontation initiated by President Trump has begun, leading to significant consequences, including declining stock markets and the implementation of retaliatory tariffs, which will negatively impact businesses and consumers on both sides of the border.

      The Trump administration's tariffs on Canadian and Mexican products will remain in place "until there is an end to the invasion of our country by illegal drugs, particularly fentanyl, and all illegal immigration."

      The White House justified these tariffs under the International Emergency Economic Powers Act, citing an "extraordinary threat to U.S. national security," which includes public health issues linked to rampant drug trafficking. They also pointed to a "sustained influx of illegal immigrants" that is purportedly straining U.S. schools, wages, housing, hospitals, welfare systems, and increasing crime rates.

      Canada responded swiftly, stating it would not "remain passive" as the U.S. imposes unfair tariffs on Canadian goods. The Canadian government implemented a 25% tariff immediately on a selection of products totaling $20.7 billion (approximately $30 billion CAD).

      From the moment U.S. tariffs took effect this morning, Canada’s countermeasures were also activated. Canada will impose 25% tariffs on $155 billion of American products, starting with $30 billion worth immediately, and the remaining $125 billion in 21 days, according to Justin Trudeau.

      The list includes 1,256 items such as orange juice, peanut butter, wine, spirits, beer, coffee, appliances, clothing, footwear, motorcycles, cosmetics, and select pulp and paper goods. Also included are pasta, firearms, and maple products.

      This extensive list could expand to encompass $106.7 billion (or $155 billion CAD) in goods if the U.S. maintains its tariffs on Canadian products. The targeted items may additionally include electric vehicles, trucks, and buses, along with fruits, vegetables, electronics, aluminum, and steel.

      The Canadian government acknowledged that all options remain under consideration, including “non-tariff options” aimed at penalizing the United States.

      Canada dismissed the White House's assertions, stating that "less than 1 percent of fentanyl and illegal crossings into the United States originate from Canada." Officials remarked that the tariffs will have "devastating effects on the American economy," leading to higher prices at grocery stores and gas stations and potential job losses.

      It's noted that Canada is the largest buyer of U.S. goods and services, purchasing more than China, Japan, France, and the United Kingdom combined. Canada is also the primary export market for 36 U.S. states, with 43 states exporting over $1 billion (or $1.5 billion CAD) annually to Canada.

      In addition to the official government response, Chrystia Freeland, a Member of Parliament and contender to succeed Prime Minister Justin Trudeau, reiterated her threat to impose a 100% tariff on Tesla. She also mentioned to MSNBC that Canada could pursue other companies associated with Elon Musk, including Starlink.

      In contrast, Mexico's reaction was less pronounced, but President Claudia Sheinbaum Pardo stated that the country would provide further details on March 9 and noted that Mexico has taken significant measures to address Trump’s concerns over the past month.