Canada and Mexico Strike Back with Retaliatory Tariffs Amid U.S. Trade War

Canada and Mexico have imposed retaliatory tariffs on U.S. goods after President Donald Trump announced sweeping trade restrictions.Retaliatory tariffs are taxes placed on imports as a response to another country's tariffs, aimed at pressuring them to remove or reduce trade barriers.

Starting Tuesday, Canada will apply a 25% tariff on American products like beverages, cosmetics, and paper, with more tariffs expected on vehicles, steel, aluminum, and food. 

Trump in his defense, threatened to raise tariffs further if Canada and Mexico retaliated. He even suggested that Canada should become the U.S.’s 51st state to avoid tariffs.

Canadian Prime Minister Justin Trudeau called for Canadians to support local products, while some provinces plan to remove American liquor from store shelves. 

Mexico has also announced plans for tariffs but has not detailed specific products or rates yet. Mexico’s President Claudia Sheinbaum rejected Trump’s accusations about criminal ties and told the U.S. to focus on its own drug and gun issues. Some Mexican businesses fear job losses if American companies withdraw due to higher taxes.

As Canada heads into an election, Trudeau’s potential successor, Mark Carney, vowed not to back down. The trade war has sparked concerns about economic impacts across North America.