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Mexico Joins Canada in Retaliation Against Trump’s Tariffs

February 2, 2025

Mexican President Claudia Sheinbaum announced on Saturday that her government is taking decisive action in response to the tariffs imposed by U.S. President Donald Trump, joining Canada in a growing trade standoff. In a post on X, Sheinbaum confirmed that she has directed her economy secretary to implement retaliatory tariffs and other measures to defend Mexico’s economic interests.

Her response adds fuel to escalating tensions between the United States and its two largest trading partners, both of whom have vowed to counteract Trump’s aggressive tariff strategy.

Mexico Pushes Back: “We Will Defend Our Interests”

In a strong rebuke of the U.S. administration, Sheinbaum questioned the rationale behind Trump’s tariffs, which were implemented under the pretext of curbing fentanyl trafficking and illegal immigration.

“If the United States government and its agencies wanted to address the serious fentanyl consumption in their country, they could fight the sale of drugs on the streets of their major cities, which they don’t do, and the laundering of money that this illegal activity generates that has done so much harm to its population,” Sheinbaum stated.

The Mexican government has emphasized its existing efforts to combat fentanyl smuggling and border security, dismissing Trump’s measures as economic coercion rather than a genuine strategy to address the crisis.

Canada Stands Firm, British Columbia Takes Action

Meanwhile, Canadian Prime Minister Justin Trudeau reaffirmed his country’s readiness to respond to U.S. tariffs, stating that he would first consult with Sheinbaum before formally addressing Canadians.

“We did not want this, but Canada is prepared,” Trudeau said in his post on X.

The backlash extended beyond national governments, with British Columbia’s Premier, David Eby, announcing a boycott of American liquor brands from Republican-led states.

“Effective today, I have directed B.C. liquor sales to immediately stop buying American liquor from red states,” Eby declared in a televised address, calling the tariffs “a declaration of economic war against a trusted ally and friend.”

Liquor store employees across the province were instructed to remove popular American alcohol brands from government store shelves as a symbolic and economic countermeasure.

U.S. Officials Defend Tariffs Amid Growing Criticism

A senior U.S. administration official, speaking on condition of anonymity, admitted that the tariffs present economic risks but emphasized that the goal is to pressure Canada and Mexico into stronger enforcement against fentanyl trafficking.

Unlike previous trade policies, Trump’s executive order does not include exemptions for key industries such as homebuilding, agriculture, and auto manufacturing, potentially dealing a significant blow to businesses that rely on Canadian and Mexican imports.

However, the official acknowledged that the administration sought to avoid disruptions in the energy market, applying a reduced 10% tariff on Canadian oil rather than the full 25% rate imposed on other imports.

Economic Fallout and Political Ramifications

Economists and trade experts have raised concerns over the broader economic implications of Trump’s escalating tariff strategy. William Reinsch, a senior adviser at the Center for Strategic and International Studies, criticized the administration’s approach, arguing that tariffs on raw materials could make American manufacturers less competitive.

“Historically, most of our tariffs on raw materials have been low because we want to get cheaper materials so our manufacturers will be competitive,” Reinsch explained. “Now, what’s he talking about? He’s talking about tariffs on raw materials. I don’t get the economics of it.”

Despite warnings of rising consumer prices and potential inflation, Trump remains committed to his protectionist trade policies, drawing comparisons to the late 19th century when tariffs were a primary revenue source for the U.S. government.

“We were the richest country in the world,” Trump said Friday. “We were a tariff country.”

Political Opposition and Uncertain Future

Democrats have wasted no time in linking any future price increases to Trump’s tariffs, warning that American consumers will bear the brunt of his trade war. Senate Democratic Leader Chuck Schumer highlighted the potential cost increases in a series of posts on X.

“You’re worried about grocery prices. Don’s raising prices with his tariffs,” Schumer wrote. “You’re worried about tomato prices. Wait till Trump’s Mexico tariffs raise your tomato prices. … You’re worried about car prices. Wait till Trump’s Canada tariffs raise your car prices.”

With Canada and Mexico now fully engaged in retaliation, the trade standoff shows no signs of de-escalation. The coming weeks will test whether diplomatic negotiations can ease tensions—or whether the U.S. is headed for a prolonged economic battle with its closest allies.

Credit: AP

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