Trudeau announces retaliatory tariffs on US as tensions boil

Ottawa — Prime Minister Justin Trudeau told US President Donald Trump on Tuesday that his new tariffs on Canadian imports were “a very dumb thing to do” and said Ottawa was striking back immediately.

Trudeau, speaking hours after Trump launched a trade war against Mexico and Canada, said Canada was imposing immediate 25% tariffs on C$30bn worth of US imports and if need be would target another C$125bn worth in 21 days’ time.

“Today the United States launched a trade war against Canada, their closest partner and ally, their closest friend. At the same, they are talking about working positively with Russia, appeasing Vladimir Putin, a lying, murderous dictator. Make that make sense,” Trudeau said.

“There is absolutely no justification or need whatsoever for these tariffs today,” Trudeau told reporters, adding that Canada would challenge the US measures at the World Trade Organisation and through the US-Mexico-Canada trade agreement.

Trump declared Canada had failed to do enough to stem the flow of the deadly fentanyl opioid and its precursor chemicals into the US, an argument Trudeau called “completely bogus, completely unjustified, completely false”.

Trudeau, who will step down as prime minister after the ruling Liberal Party chooses a new leader on Sunday, warned Canadians that tough times were coming.

Economists say Canada, which sends 75% of all exports to the US, will plunge into a recession unless the tariffs are lifted quickly.

But they also say Americans are likely to suffer as well, given how tightly the two economies are connected. In late January, the Wall Street Journal said Trump would be launching “the dumbest trade war in history” if he went ahead.

“It's not in my habit to agree with the Wall Street Journal, but Donald, they point out that even though you’re a very smart guy, this is a very dumb thing to do,” Trudeau said.

Trump’s actions are unprecedented and threaten to severely damage relations between the three trading partners.

Canada’s two most populous provinces, Quebec and Ontario, are taking US alcohol off the shelves of provincially run liquor stores and Canadian sports fans have begun booing US teams.

“We’re going to choose to try to buy Canadian products and forgo bourbon and other classic American products. And yeah, we’re probably going to keep booing the American anthem,” Trudeau said.

“But let me tell Americans, we’re not booing you, we’re not booing your teams, we’re not booing your players. We’re booing a policy that is designed to hurt us. And we’re insulted and we’re angry... we’re going to fight and we’re going to win.”

Meanwhile, Mexican President Claudia Sheinbaum on Tuesday condemned Trump’s 25% tariffs and said her government would respond with its own measures, without immediately providing details.

She would provide more detail in Sunday, she said.

Reuters