President Donald Trump has ordered new tariffs on imports from key trading partners, triggering contrasting responses from Canada and China. The measures include 25% tariffs on Canadian and Mexican imports and 10% on Chinese goods, set to take effect Tuesday.
Canada's Prime Minister Justin Trudeau announced swift retaliation, unveiling countermeasures worth C$155 billion ($107 billion) on U.S. imports. C$30 billion in tariffs will be implemented immediately, matching Trump's timeline, with the remaining C$125 billion following in three weeks. The Canadian tariffs target American products including beer, wine, bourbon, fruits, and orange juice from Florida, along with clothing, sports equipment, and household appliances.
"From the beaches of Normandy to the mountains of the Korean Peninsula, we have fought and died alongside you during your darkest hours," said a somber Trudeau, flanked by his ministers. "We didn't ask for this but we will not back down." He encouraged Canadians to buy domestic products and vacation locally rather than in the U.S.
In contrast, China's response has been more measured. While denouncing the tariffs as a "serious violation" of international trade rules, Beijing has opted for a diplomatic approach, filing a symbolic challenge at the World Trade Organization while leaving the door open for negotiations. This measured tone marks a departure from the heated exchanges that characterized previous trade disputes with Trump.
Trump cited fentanyl trafficking as justification for the Chinese tariffs, prompting pushback from Beijing. "Fentanyl is America's problem," China's foreign ministry stated, asserting that they had already achieved "remarkable results" in anti-narcotics cooperation with the United States.
The trade tensions come at a challenging time for Canada, as Trudeau plans to step down amid low approval ratings once a new Liberal Party leader is chosen. The U.S.-Canada relationship is particularly crucial, with the 9,000-km border facilitating over $2.5 billion in daily trade. Canadian exports to the U.S. account for roughly 17.8% of Canada's GDP and more than 2.4 million jobs.
China, dealing with its own economic challenges despite meeting its 5% growth target last year, has been preparing for these tariffs by strengthening allied relationships and focusing on technological self-reliance. The country's massive trade surplus of nearly $1 trillion remains a point of vulnerability, leading analysts to expect China might seek an early deal with Trump to minimize economic impact.
