Analysts have highlighted that if the tariffs imposed by Trump persist, Canada could face a recession within six months. Canadian Prime Minister Justin Trudeau revealed that his country is working with Mexico to counteract the 25 percent tariffs imposed by the United States on both nations. Trudeau communicated that he had a conversation with the President of Mexico, Claudia Sheinbaum, shortly after U.S. President Donald Trump signed the decrees to tax imports from both countries.
"Geography has made us neighbors, history has made us friends, the economy has made us partners, and necessity has made us allies," Trudeau expressed in his speech. Canada has considered this decision as a declaration of trade war. In response, Trudeau announced that he would impose a 25 percent tariff on products from the United States, valued at 155 billion dollars, in retaliation for the tariffs announced by Trump's government.
The Canadian tariffs will come into effect next Tuesday, February 4, starting with 30 billion dollars and increasing to an additional 125 billion over 21 days. The taxed products include beer, wine, bourbon, fruit juices, and household appliances, and additional non-tariff measures are being evaluated that could target partnerships in the minerals and energy sectors. In this context, Trudeau emphasized: "It doesn't have to be this way."
