Trump threatens to match Canada’s retaliatory tariffs – Washington Examiner
The ongoing trade tensions between the United States and Canada have escalated considerably wiht President Trump’s recent proclamation of a 25% tariff on imports from Canada, which has been met with immediate retaliation from Canadian Prime Minister Justin trudeau. Trudeau’s government has implemented equivalent tariffs—also set at 25%—on around $155 billion worth of U.S. goods, affirming that the retaliatory measures will remain until the U.S. tariffs are withdrawn.
In response to this action, Trump indicated on social media that any retaliatory tariffs imposed by Canada would prompt a reciprocal increase in U.S. tariffs, possibly leading to a continuous cycle of escalating tariffs. There is a concern that this “tariff war” could have broad implications for both economies as well as global markets, as evidenced by a sharp drop in the Dow Jones Industrial Average following Trump’s tariff confirmation.
Trudeau has expressed that the tariffs lack justification, highlighting Canada’s efforts to control the fentanyl trade, which Trump claims is a reason for his tariff policy. Both leaders are currently engaged in a battle of economic measures, with trump emphasizing that tariffs are vital to correcting what he perceives as unfair trade practices by canada, especially regarding Canadian tariffs like the hefty dairy tariffs that he believes disadvantage American producers. The situation remains tense, with potential for further escalation in the coming weeks.
Trump threatens to match Canada’s retaliatory tariffs by a ‘like amount’
The tariff battle between the United States and Canada could turn into a feedback loop if President Donald Trump follows through with a new threat to levy another round of retaliatory tariffs against the northern country.
The U.S. hit Canada with 25% tariffs Tuesday morning, after which Canadian Prime Minister Justin Trudeau announced his country would impose 25% retaliatory tariffs going back the other way. But Trump threatened Tuesday afternoon that new import duties could swing right back around to Canada again.
“Please explain to Governor Trudeau, of Canada, that when he puts on a Retaliatory Tariff on the U.S., our Reciprocal Tariff will immediately increase by a like amount!” Trump posted on Truth Social.
In such a scenario, tariffs imposed by both countries on each other would continue rising in increments of 25% until one or the other has had enough of the game. Trump’s retaliatory tariff scheme could go into effect as soon as April 2.
Trump said on the campaign trail that “tariff” is the most beautiful word in the dictionary and has promised tariffs on Canada and Mexico since before taking office.
He appeared to follow through Tuesday morning when 25% import duties were levied on products coming from those countries, which both share a long border with the U.S.
Canadian retaliatory tariffs on $155 billion of U.S. goods went into effect on Tuesday at 12:01 a.m.
In a statement, Trudeau insisted that “there is no justification for these actions,” adding that his government took multiple steps to stop the flow of fentanyl to the U.S. Trump says he implemented tariffs to stop the flow of fentanyl over the southern and northern borders.
Trudeau is hoping that Trump will back down.
“Our tariffs will remain in place until the U.S. trade action is withdrawn, and should U.S. tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures,” he said. “While we urge the U.S. administration to reconsider their tariffs, Canada remains firm in standing up for our economy, our jobs, our workers, and for a fair deal.”
Trump, on the other hand, knows that the massive size of the U.S. economy means that its northern neighbor has more to lose in the fight. He has complained for years about high tariffs, such as a 270% dairy tariff imposed by Canada, that the U.S. refused to match.
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But the fight could have massive implications for businesses and consumers across the globe.
The Dow Jones Industrial Average dropped by more than 600 points on Monday after Trump confirmed the new tariffs are coming. He’s expected to address the issue Tuesday night during his joint address to Congress.
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