US may feel ‘some pain’
Canada, Mexico plan to retaliate; China relations strained even further
- JOSH BOAK–Associated Press
TRUMP ADMINISTRATION | TARIFF TAXES
PALM BEACH, Fla. — President Donald Trump said Sunday that Americans could feel “some pain” from the emerging trade war triggered by his tariff taxes against Canada, Mexico and China, and claimed that Canada would “cease to exist” without its trade surplus with the United States.
The trade penalties that Trump signed Saturday at his Florida resort caused a mix of panic, anger and uncertainty, and threatened to rupture a decades-old partnership on trade in North America while further straining relations with China.
“Canadians are perplexed,” said the country’s U.S. ambassador, Kirsten Hillman. “We view ourselves as your neighbor, your closest friend, your ally.”
Canada and Mexico ordered retaliatory tariffs on American goods in response to the tariffs, and businesses and consumers in both countries questioned Sunday how the new trade war might affect them.
Canada initially ordered tariffs of 25% on American imports starting Feb. 4, including beverages, cosmetics and paper products worth 30 billion Canadian dollars ($20 billion). A second list of goods was to be released soon, including passenger vehicles, trucks, steel and aluminum products, certain fruits and vegetables, beef, pork, dairy products and more. Those goods were estimated to be worth 125 billion Canadian dollars ($85 billion).
Mexico has so far said only that it will impose retaliatory tariffs, without mentioning any rate or products.
Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum spoke by phone Saturday after Trump’s administration imposed the new tariffs — 25% on goods from Canada and Mexico, with a lower rate of 10% for Canadian oil, and 10% on imports from China.
Trudeau’s office said in a statement that Canada and Mexico agreed “to enhance the strong bilateral relations” between their countries. Canadian officials have had extensive dialogue with their Mexican counterparts, but a senior Canadian official said he would not go as far as to say the tariff responses were coordinated.
“Now is the time to chose products made right here in Canada,” Trudeau posted Sunday on X.
Canada is the largest export market for 36 states, and Mexico is the largest trading partner of the U.S.
By following through on a campaign pledge, Trump may also have simultaneously broken his promise to voters in last year’s election that his administration could quickly reduce inflation. That means the same frustration he is facing from other nations might also spread domestically.
“WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!),” Trump said in a social media post. “BUT WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID.”
His administration has not said how high that price could be or what improvements would need to be seen in stopping illegal immigration and the smuggling of fentanyl to merit the removal of the tariffs.