Ottawa, March 5, 2025 – The U.S.-Canada trade war escalated Tuesday as Prime Minister Justin Trudeau slapped $100 billion in retaliatory tariffs on American goods, prompting President Trump to threaten even harsher measures.
After Trump’s 25% tariffs on Canadian and Mexican imports took effect, Trudeau dismissed the move as a “dumb” trade war aimed at weakening Canada. Trump fired back on Truth Social, vowing “reciprocal increases” if Canada retaliates.
Trudeau, set to step down Sunday, said Canada won’t back down and has taken the fight to the World Trade Organization. Meanwhile, Ontario’s premier threatened a 25% export tax on U.S.-bound electricity, potentially cutting power to 1.5 million homes in Michigan, New York, and Minnesota.
Mexico and China also hit with steep U.S. tariffs, pledged retaliation. Mexico’s president condemned the move as “unjustified,” while Beijing imposed new tariffs on U.S. farm exports.
With tensions rising and global markets on edge, the trade standoff is set to intensify in the coming weeks.
Source: Al Jazeera
