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The development came after Trump announced 25 percent tariffs on goods from Mexico and Canada.
US President Donald Trump (AP Photo)
The tariffs imposed by the United States on Canadian and Mexican goods came into effect on Tuesday amid the ongoing threat of retaliatory tariffs by the outgoing Canadian Prime Minister, Justin Trudeau. The development came after Trump announced 25 percent tariffs on goods from Mexico and Canada.
Folllowing Trump’s announcement, Canadian Prime Minister Justin Trudeau threatened US with imposition of retaliatory tariffs on US goods and announced that Canada would impose retaliatory tariffs on US goods worth $107 billion (155 billion Canadian dollars) from Tuesday.
Canada Hits Back At US With Retaliatory Tariffs Threat
In an attempt to avert the high tariffs of the United States, outgoing Canadian Prime Minister Justin Trudeau said that the country would impose tariffs on US goods worth 30 billion Canadian dollars from Tuesday if the Trump administration goes through with its plan, reported news agency Reuters.
The retaliatory tariffs on the remaining C$125 billion will be enforced after 21 days, according to Trudeau’s statement.
“Today, after a 30-day pause, the United States administration has decided to proceed with imposing 25 per cent tariffs on Canadian exports and 10 per cent tariffs on Canadian energy. Let me be unequivocally clear – there is no justification for these actions,” Trudeau added.
Mexico Ready With Backup Plan
Meanwhile, Mexico also braced itself ahead of the imposition of the tariffs announced by the United States, stating that it has back-up plans. A day ahead of the March 4 deadline given by Donald Trump, Mexico President Claudia Sheinbaum on Monday said that the “country was prepared” in case the US slaps tariffs on it on Tuesday.
“We have a plan B, C, D,” Sheinbaum was quoted as saying by Reuters.
Global Markets Slow Down
The news of imposition of tariffs by US President Donald Trump on Mexican and Canadian goods have shaken global stock markets. Major equity markets faced significant losses, with US stocks experiencing a sharp decline.
The Indian market is also expected to feel the impact of the escalating trade war. The uncertainty surrounding the Trump administration’s actions is predicted to further dampen market sentiment, potentially leading to a decline in the Nifty.
- Location :
Washington D.C., United States of America (USA)
