The trade conflict between Canada, Mexico, China, and the United States has escalated after President Trump imposed tariffs on goods from these countries. In early 2025, the U.S. imposed a 25% tariff on goods from both Canada and Mexico, with a lower 10% tariff on Canadian oil, as well as a 10% tariff on imports from China. In response, both Canada and Mexico have retaliated with their own tariffs, with Canada introducing a 25% tariff on American imports starting Feburary 4, 2025. These tariffs are scheduled to cover a wide variety of products including beverages, cosmetics, and paper goods: totaling about 30 billion Canadian dollars. Additionally, a second list of products, such as cars, trucks, steel, aluminum, and agricultural goods are expected to be targeted soon, causing the total value of the tariffs to rise to 125 billion Canadian dollars. Unlike Canada, Mexico hasn't set specific tariffs, however Mexican President Sheinbaum posted a video on X earlier today which made it clear that they will impose retaliatory tariffs by as soon as tomorrow if the United States does not retract its 25% tariffs on imports from Mexico and work side-by-side with them. China's Ministry of Commerce also urges the U.S. to meet them halfway, but in the meantime has claimed they will file a lawsuit against the U.S. with the World Trade Organization over the 10% tariffs imposed on Chinese goods.
Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum have both condemned the tariffs and emphasized the importance of maintaining strong bilateral relationships. Trudeau has encouraged Canadians to support local products rather than those from the U.S. by posting, "Now is the time to choose products made right here in Canada" on X. This has enabled Canadians to also begin removing American liquor brands from government store shelves. As the U.S. and Canada have historically been allies, many Canadians feel betrayed by the U.S. for imposing these tariffs, as they view them as an unjust attack. Trudeau has reminded Americans that historically, Canada has stood by the U.S. in times of need. They have provied the U.S. disaster relief during major events like Hurricane Katrina and the California wildfires and fought alongside American troops in Afghanistan, making the tariffs seem especially unjust.
This trade war has also stirred up emotions among the public in both Canada and Mexico. In Canada, Canadians have begun to boo during the U.S. national anthum at sporting events against American teams, such as at recent National Hockey League games and during an NBA game in Toronto where the Raptors faced the Clippers. Meanwhile, in Mexico, some citizens, like Miriam Tenorio, a fruit vendor in Mexico City, are considering boycotting American goods, stating "If we Mexicans say no to the Coca-Cola, we don't drink Coca-Cola." As tensions continue to grow, the upcoming election for leader of the Liberal Party of Canada has also neared, as Trudeau's Liberal Party will announce a new leader on March 9th. Mark Caney, a prominent candidate for the position, claims that "Canada will not bow down to a bully," highlighting his determination to challenge Trudeau's handling of the trade dispute and find a resolution to avoid further economic and diplomatic consequences.
Sources:
https://www.nytimes.com/2025/02/02/world/us-tariffs-canada-china-mexico.html
https://x.com/Claudiashein/status/1886140972733772200?mx=2
https://thehill.com/policy/international/5121368-china-files-legal-case-us-wto-tariffs/
4 comments:
U.S. may view these tariffs as a means to protect domestic industries and address trade imbalances, the broader implications are significant, particularly for international relationships and global trade. The economic conflict has spilled over into cultural and social realms, as seen in Canadian citizens boycotting American goods, public protests during U.S. national anthems, and Mexican vendors rallying against U.S. products. These grassroots reactions highlight how trade disputes extend beyond government policies to affect public sentiment and cross-border solidarity. Such actions underscore the risks of unilateral economic measures, which, while potentially yielding short-term benefits, risk undermining long-term alliances and disrupting global supply chains. A more cooperative and diplomatic approach could better address trade concerns while maintaining the trust and collaboration necessary for mutual economic and political stability.
Very recent news but Trump has walked back the tariffs after talks with both the Canadian prime minister and Mexico's president. While the original intent is to "protect" American business and promote more national purchases and less importation of foreign goods America is a service based economy. Majority of our GDP and economy is based on businesses provided services over providing goods, and those that do provide goods typically produce them in other countries such as China. Additionally, if tariffs hit most if not all foreign countries hard Taiwan, one of the largest producers of semi-conductors and silicon based chips could be prohibitively expensive massively increasing prices of nearly every tech item on top of groceries. In general, these tariffs are a foolish move that primarily harms the average American and marginally helps smaller US companies while harming international American companies. Hopefully, the cooperative call between Trump, Canada, and Mexico have put that into more perspective so we can avoid a trade war.
I do view the way in which trump has gone about implementing these tariffs to be quite concerning, seemingly neglecting the other branches in the process. It also is quite hypocritical for Trump who was always saying that he would lower inflation to further cause inflation with tariffs. I do agree though that both Mexico and Canada have been taking the US for granted in many aspects such as defense and trade, relying on the US to sustain their economies while seemingly not offering much in return. While I don't exactly agree with the way Trump has gone about things, I think that it is necessary for the US to get some more concessions from both countries. It seems to be working with Mexico agreeing to supply more border guards, although I still don't think Trump can be the only person involved with writing the law and needs to go through democratic processes before just doing things.
You bring up an excellent point about the lesser discussed cost of these poor decisions: the effect it has on our countries international reputation, and the close-knit relationships with our allies which have made us a strong, wealthy country.
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