Trump confirms 25% tariffs on Mexican, Canadian imports starting Tuesday

U.S. President Donald Trump has confirmed that his administration will impose a 25% tariff on Canadian and Mexican imports starting Tuesday, marking the beginning of a new trade conflict.

Speaking at the White House, Trump defended the move, stating that the U.S. had been “a laughingstock for years” in trade and claiming that Canada and Mexico had exploited the system. He dismissed any possibility of negotiation.

Despite contradicting data, Trump accused Canada of allowing fentanyl to enter the U.S. and justified the tariffs as a necessary measure.

Canada prepares retaliatory tariffs

In response, Canadian Foreign Affairs Minister Mélanie Joly announced that Canada is ready with a retaliatory package, including $155 billion worth of tariffs, with an initial $30 billion tranche already confirmed. She warned that the tariffs could threaten thousands of Canadian jobs and significantly impact the economy.

Economic concerns and recession warnings

Economists caution that the trade war could push North America into a recession. Bank of Canada Governor Tiff Macklem warned that this economic downturn could be more damaging than the pandemic-induced recession, as it may lead to long-term structural changes with no quick recovery.

The tariffs will make Canadian goods less competitive, forcing American importers to pay a 25% levy, which could drive up prices for U.S. consumers on essential products, including car parts and pharmaceuticals.